Ancillary costs such as taxes, surcharges and network fees account for more than two-thirds of electricity costs in Germany.
In order to protect the economy, the legislator has created numerous exemptions and special regulations that can be used to reduce ancillary electricity costs.
Companies with an annual electricity consumption of more than 1 GWh can benefit from reduced CHP apportionments. They must apply for these to the responsible network operator by March 31 of the following year. In doing so, they must state how much electricity they have drawn from the grid and how much they have consumed themselves. If the report is not submitted, companies must pay the levies in arrears.
So-called special contract customers save over 95% of the concession fee – they pay only 0.11 ct/kWh. A special contract customer is anyone who
a) consumes at least 30,000 kWh per year and
b) reaches a maximum power of 30 kW in at least two months.
With a smart electricity meter, commercial customers with an annual consumption of less than 100,000 kWh (SLP customers) can also measure their peak power consumption and determine their potential savings on the franchise fee.
In the case of natural gas, all companies that are not supplied under the basic/replacement supply system benefit from a reduced concession fee. You pay only 0.03 ct/kWh. If annual gas consumption exceeds 5 million kWh, the concession fee does not even apply at all.
Energy-intensive companies in the manufacturing sector in particular can benefit from the peak compensation. You will also be reimbursed for the tax burden that remains after §9. To be eligible for peak compensation, your company must meet the following requirements:
The amount of relief depends on the difference in the electricity tax that exceeds the base amount and the (notional) relief from the reduced pension contributions.
Analogous to the Electricity Tax Act, the Energy Tax Act provides for complete energy tax relief for certain processes and procedures. Likewise for energy products used in stationary CHP plants. Companies in the manufacturing sector or companies in agriculture and forestry can also apply for tax relief if they use their products to generate heat for business purposes.
Companies entitled to deduct input tax can offset the VAT against the sales tax and thus make quasi net purchases. However, companies in the healthcare, finance, and municipal, church, and non-profit sectors are not entitled to deduct input tax, so they pay 19 percent more when purchasing.
There are 3 ways to handle at least the energy purchase in a sales tax optimized way.
From a purchase volume of more than 1 GWh per year, the offshore liability levy can be limited to 0.027 ct/kWh. If the cost of electricity in relation to sales in the last completed fiscal year is more than 4 percent, the levy is reduced to 0.025 ct/kWh.
Network charges can be reduced in 3 ways:
- Seasonal and singular network use
If the network user uses all the operating resources in the relevant network or transformer level itself, the exit points shall be treated with regard to the charges as if they were connected directly to the upstream network or transformer level.
- Atypical network use
If a grid customer’s maximum power consumption is outside the grid operator’s peak load window and the difference between the annual peak load and the highest load in the peak load window is at least 100 kW, grid charges can be reduced by at least 20 percent and up to 80 percent.
- Intensive network use
From a purchase volume of at least 10 GWh per year and purchase point, the network charges can be reduced by 80 percent for at least 7,000 hours of use, and by 90 percent for at least 8,000 hours of use.
Coming soon …
For energy-intensive companies, which are heavily burdened due to significantly increased energy costs for gas and electricity, there will be a time-limited and narrowly defined cost subsidy to provide targeted assistance. This involves the period from February to September 2022. At the same time, the aim is to prevent the subsidized companies from passing on their costs in full to their customers, so that the affordable supply of citizens remains guaranteed.
This is a direct subsidy for companies that are particularly burdened by rising energy prices.
The starting point is the price difference of the electricity and gas costs paid in 2022 compared to the costs incurred in 2021. The price difference above a doubling of the natural gas and electricity price is subsidized on a pro-rata basis as specified by the TCF (Temporary Crisis Framework).
Coming soon …