• Connect With Us:
  • Hydropower project operator files complaint with EC over Swedish taxation

    Swedish Flag

    European utility Fortum has filed a complaint with the European Commission, claiming that the Swedish government is applying a selective tax on hydroelectric power.

    According to a Fortum release, Sweden is planning to increase the real estate tax for hydropower projects based on their production volumes, with the tax on the market price of hydroelectricity increasing between 25-30%. In Fortum's case, that could translate to an estimated US$52.6 million in taxes per year.

    "Energy taxation should conform with the Energy Taxation Directive according to which electricity is to be taxed at consumption -- not at production," Fortum's Head of Tax Reijo Salo said. "Furthermore, energy taxation should be transparent so that consumers can see how energy is taxed. In Sweden, this is not the case."

    Fortum claims the tax is selective as the hydropower sector is the only form of carbon dioxide-free production form being targeted, making it an "indirect state subsidy to production based on fossil fuels and in clear conflict with the Swedish government's climate and energy goals."

    The company's complaint filed with the European Commission asks whether the increase real estate tax on hydropower can be based on production values as it is now, considering the EU's regulations on excise duty.

    The complaint also asks the Commission to determine whether taxes targeting specific production forms are to be considered as indirect state subsidies to other production forms.

    The European Commission is investigating the complaint.

    The Finland-based company said it currently pays more taxes in Sweden than any other country.

    For more news from Europe, visit here.

    Hydro Industry Financials

    Buyers Guide Products

    Zagorsk PSP, Russia

    Zagorsk Pump Storage Plant 6 x 236 MVA, 150 rpm...

    Most Read Articles

    Recent Comments

    Buyers Guide Companies

    Balluff GmbH

    Offers sophisticated sensors, transducers, indu...

    ThyssenKrupp Resource Technologies GmbH

    Houghton International

    High voltage (HV) coils manufacturers and suppl...

    Scott Aerator Co LLC

    Manufacturers of industrial grade de-icing equi...

    Renewable Energy Corp Ltd

    Designs, distributes and supplies wind, PV, hyb...

    Continuing Education

    Professional Development Hours
    To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

    12/01/2013
    Volume 32, Issue 10
    file
    01/01/2014
    Volume 22, Issue 1
    1401hrw-cvr

    Archived Articles

    2006 | 2007 | 2008 | 2009 | 2010 2011 | 2012 | 2013
    Hydro Review Past Issues

    Premium Content AD Promo Space