Price agreements keep Dutch green energy prices high

Nov 26, 2001 01:00 AM

Agreements worked out between Dutch energy companies and the economic affairs ministry is keeping the price of green energy artificially high, according to reports released. Spokesmen for the ministry and the energy companies admitted that, in order to justify the environmental tax exemption on green energy, they have agreed not to offer green energy much more cheaply than conventional energy.

The agreement will cost some 700,000 private users in The Netherlands about Fl 135 mm per year. The Dutch government fears that the European Commission will object to the tax exemption if green energy is offered at a much lower rate than regular energy. The European Commission would probably consider this as an illegal government subsidy.
As long as green energy is not much cheaper than regular energy, the Dutch government can justify the exemption as an environmental measure.

Source: EyeforEnergy
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