Special Equalisation Scheme

The Special Equalisation Scheme provides for an exemption for undertakings with high electricity costs and for further eligible companies in order to limit their surcharges for the take-off of electricity.

If certain preconditions are fulfilled, undertakings with high electricity costs and other eligible companies can apply for a limitation of the surcharges for electricity (sections 29 ff of the Energy Financing Act) to the Federal Office for Economic Affairs and Export Control (BAFA). Applications need to be submitted by 30 June and in special cases by 30 September of a specific year (application year) for the following calendar year (limitation year).

The aim of the exemption is to maintain the international competitiveness, reduce emissions, develop new technologies and strengthen eligible modes of transport.

Since 1 January 2023, the preconditions and the impact of the measure have been stipulated in the Energy Financing Act (EnFG). Before, the Special Equalisation Scheme had been stipulated in the Renewable Energy Sources Act (RES Act). With the introduction of the Energy Financing Act, the surcharges for the take-off of electricity and their limitations have been harmonised and bundled in a single Act.

The Energy Financing Act serves to provide funding for the costs arising from the RES Act, the Combined Heat and Power Act (CHP Act) and the offshore grid connection. Whilst the EEG surcharge was completely abolished when the Energy Financing Act was introduced, the CHP Act surcharge and the offshore grid surcharge continue to exist.

Large parts of the Special Equalisation Scheme as laid down in the 2021 RES Act have been transferred into the Energy Financing Act. In light of the significantly reduced relief (now only for the CHP Act surcharge and offshore grid surcharge), the Special Equalisation Scheme has been harmonised and the application procedure has been optimised. In addition, the measure has been brought in line with new State aid rules.

Undertakings with high electricity costs

Undertakings with high electricity costs and companies which produce electrochemical hydrogen can choose between the basic procedure and an extended procedure. The basic procedure results in a limitation of the surcharges to a certain percentage (limitation to 15% and 25% of the surcharges respectively). In the context of the extended procedure, the surcharges are limited to a certain percentage of the gross value added (0.5% and 1.5% respectively). The proof requirements to be met are higher in the context of the extended procedure. The percentage granted to eligible undertakings depends on the sector and the proportion of the take-off of electricity from renewables.

A major change is the abolition of the assessment of the individual companies’ electricity cost intensity in the context of both procedures. This is a substantial simplification of the application procedures.

Precondition for relief: “green conditionality”

Pursuant to the new rules of the Special Equalisation Scheme as laid down in the Energy Financing Act, undertakings with high electricity costs and companies which produce electrochemical hydrogen need to fulfill the precondition of “green conditionality” for the surcharges to be limited.

This means that they need to increase their energy efficiency, use a large proportion of green electricity or invest in the decarbonisation of their production processes. In contrast to the former rules under the RES Act, it is not sufficient that undertakings have an energy management system.

The specific requirements to be met in terms of the “green conditionality” are laid down in section 30 (3) of the Energy Financing Act, and the proof requirements can be found in section 32 (3) of the Energy Financing Act. The requirement of “green conditionality” is based on the new guidelines on State aid for climate, environmental protection and energy of the European Commission.

A comprehensive information sheet for undertakings with high electricity costs published by the Federal Office for Economic Affairs and Export Control in 2024 (“​Merkblatt für stromkostenintensive Unternehmen 2024”) and further information can be found at ​BAFA.

In 2024, BAFA also published a separate information sheet on “green conditionality” entitled “​Merkblatt Grüne Konditionalität 2024“. It helps interested undertakings to get familiar with the topic.

Other eligible companies

In the transport sector, the Special Equalisation Scheme is open to railway undertakings, transport companies with electrically driven buses in regular service and shoreside electricity installations. Details about the relevant preconditions and the legal consequences deriving from the limitation of surcharges can be found in sections 37-39 of the Energy Financing Act.