The European Economic and Social Committee calls for adopting a common energy tax regime
The European Economic and Social Committee (EESC) adopted an opinion which states that if the EU is to meet its energy and climate policy goals, it will need to adopt a common energy tax regime. The opinion suggested creating a common tax framework which would link the tax rate to the energy source and factor in CO2 emissions.
An opinion adopted in plenary session in the European Economic and Social Committee (EESC) calls on Member states to adopt a common energy tax regime if the EU is to meet its energy and climate policy goals. The opinion presents European civil society's stance on the European Commission's plan to complete the internal energy market by 2014, and deplores the fact that the gas and electricity markets are still European in name only.
The internal energy market was intended to give consumers better choice and value, by enabling them to switch energy suppliers. It was also supposed to unleash market forces to drive much-needed investment in the energy sector. The EESC stressed that consumers must be placed at the heart of EU energy policy, enabling them to make the most of a new, smarter energy market.
The burden of fees and VAT for electricity ranges from 4.7% in the UK to 45.6% in Denmark, with no heed to the energy content of electricity produced. According to the EESC, local and national taxation results in price distortions that heavily penalise consumers and energy-intensive industries. The EESC also underlined that the EU must make a clear distinction between policies targeting energy poverty and protectionist practices that go against the spirit of the internal market.