WRITTEN QUESTION E-0367/00 by Marie-Noëlle Lienemann (PSE) to the Commission. Reduced VAT rates for district heating systems' customers.
21. 11. 2000 EN Official Journal of the European Communities C 330 E/141 (2000/C 330 E/158) WRITTEN QUESTION E-0367/00 by Marie-Noºlle Lienemann (PSE) to the Commission Subject: Reduced VAT rates for district heating systemsí customers (14 February 2000) To date, the supply of gas and electricity appears in the Community list of projects to which the Member States of the European Union may apply a reduced VAT rate. On the other hand, this is not the case for customers of district heating networks. However, these urban networks often help in a reprocessing of domestic waste and in energy diversifica- tion, which is a European Union objective; finally, with regard to the social requirements which determine the reduced rate, whether the consumer uses gas, electricity or a district heating system, the tax burden should be the same, especially since the consumer often hardly has any choice (people living in blocks of flats, etc. ). Can the Commission please explain what could have justified such an imbalance between the different types of energy supply? Does it intend to correct this imbalance by proposing the inclusion of agreements concluded with district heating networks in the list of projects which may benefit from reduced VAT rates? Answer given by Mr Bolkestein on behalf of the Commission (22 March 2000) Current Community legislation does not allow Member States to apply a reduced VAT rate to district heating systemsí customers. The current rules were adopted after negotiations within the Council which led to the amendment of the Commissionís original proposal (1) dropping the possibility of applying a reduced VAT rate to natural gas and electricity. In its proposal on the harmonisation of rates the Commission stated that the obligatory reduced rate should apply to energy products for heating and lighting in order to avoid distortions. The Commission will examine this matter at the next meeting on the contents of Annex H to the Sixth VAT Directive (77/388/EEC) (2) to which the reduced rate applies. It cannot, however, at this stage predict the outcome of the Councilís discussions on any new proposals. (1) OJ C 250, 18. 9. 1987, amended by OJ C 44, 19. 2. 1992. (2) OJ L 262, 15. 10. 1977. (2000/C 330 E/159) WRITTEN QUESTION E-0368/00 by Benedetto Della Vedova (TDI) to the Commission (14 February 2000) Subject: Transfer of part of the electricity generation capacity of ENEL S. p. A. , the former Italian state monopoly in this sector As part of the process of privatising and liberalising the electrical energy production sector, the Italian Government recently decided in its capacity as controlling shareholder, and in accordance with the relevant legal provisions, to remove 21 plants with a total capacity of 15 thousand megawatts from the former state monopoly ENEL S. p. A (equal to about a quarter of its production capacity) and hand them over to three separate and newly established companies: Eurogen S. p. A. , Elettrogen S. p. A. and Interpower S. p. A. On 25 January 2000 the Italian Cabinet passed a decree laying down the procedures for the transfer involving the three private companies, stipulating that it should be done through private negotiation, under the control of ENEL S. p. A. and under the supervision of the Treasury Minister and the Minister for Industry, as well as with the assistance of the advisory committee for privatisations