Thursday, 28 January 2010

Tax on unused electricity production sites

Wednesday, minister Magnette responded to several questions relating to the tax (or levy) on the unused sites suitable for electricity production. This tax was established by the Act of 8 December 2006 and is levied on all plots of land on which a production installation with a capacity of 400 MW (gas fired), 250 MW (coal or biomass fired) or 250 MW (CHP) can be build. All existing unused sites are property of Electrabel. Aim of the Act was to incite Electrabel to sell these sites to competitors. Notwithstanding the fact that the amount of tax was 51,150,000 EUR (yearly) in 2006, 2007 and 2008, and 67,500,000 EUR/Year in 2009, Electrabel only sold one such site to E.ON. All others are still its property.

Electrabel unsuccessfully challenged the legality of the Act of 2006 before the Constitutional Court. It also challenged the amounts to be paid before the court of first instance in Brussels claiming that most of the sites do not fall under the conditions of the Act of 2006.

The minister declared that he is waiting for the judgment of the court before starting discussions with Electrabel on the compliance with the provisions of the Act.
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