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CO2 Tax Demanded By Energy Company, E.ON In Germany

The chief executive of the major utility company, E.ON, on Tuesday called for a new CO2 tax in Germany, which said that a fairer and superior energy transition is feasible.

The tax would be 35 euros per tonne of emissions due to the use of fossil fuels for the generation, transmission, and heating. According to Reuters, the German authorities are currently discussing such a tax.

In a statement at the German company’s annual meeting, the director, Johannes Teyssen, said the tax would generate € 25 Billion in tax revenue for the German Finance Ministry.

As a country, Germany tries to use more sources, such as wind and solar power, while moving away from nuclear power. In 2017, renewable energy accounted for 33.3% of gross electricity production, followed by wind, biomass, and photovoltaic solar energy.

E.ON is working on a key asset exchange with another German supplier, RWE. Through the terms of the agreement declared in March 2018, RWE will move its stake in the green energy company Innogy to E.ON. RWE, in turn, take the renewable energy activities of E.ON and Innogy, and other assets. In early March, the European Commission opened an in-depth investigation into E.ON’s proposed acquisition of Innogy.

Teyssen said the company is clearly not interested in charging more fees, and taxes to customers. “We propose that in future the annual costs of the German law on renewable energy about €25 Billion will be financed by the federal budget with carbon tax revenues,” he said.

Teyssen also stated that electricity tax of Germany should be brought down, which would ultimately help to cut the electricity prices by 9 cents per kilowatt hour.

It has been stated that the RWE acquisition deal is already in progress.

Douglas Costanza Subscriber
EDITOR-IN-CHIEF At E-Industry News

The association of Douglas Costanza and E-Industry News has completed almost 5 years and now he works as a Senior Editor. Douglas is committed to write news bulletins from the Business field including the global share market, automobile market, crude oil market, and so on. In his free time, Douglas likes to try new food dishes. As a social worker, Douglas as well likes to arrange charity plans and help for orphan education.

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