Considerations by FuelsEurope on the Commission’s proposal for a mandatory temporary Solidarity Contribution

The Commission’s proposal for a mandatory temporary Solidarity Contribution has included fuels refiners in its scope.

FuelsEurope understands that exceptional and temporary measures to alleviate the consequences of the current crisis should direct resources to vulnerable parts of society facing higher energy costs this coming winter. The Fuels Manufacturing Industry is ready to discuss this proposal with the Commission and the Member State governments.

FuelsEurope asks that, in the interests of maintaining fair competition, measures address all suppliers to the EU market, not only refiners and EU-based companies.

Across the EU, national governments measures are already in place in some countries and it is important that consistency between EU and national measures is ensured. This should avoid the risk to create uneven conditions for companies operating on the EU energy market and should prevent forms of double taxation.

Liquid fuels have provided additional energy security to Europe in recent months, including some substitutions for natural gas. The market conditions that have created higher profitability have also enabled the greater supplies into Europe. It is important that measures are not set at a level that would discourage adequate supplies.

The proposal references 2022 profits compared with 2019/2020/2021. As this includes the extraordinary circumstances of the pandemic, a deeper discussion on what represents a period of regular business conditions will be needed.

The EU Fuels Manufacturing Industry is engaged in a transformative transition, essential for meeting the EU’s 2050 climate objectives. This transition requires financial robustness and investors’ confidence. The solidarity contribution should respect the proportionality principle and should not impair the capacity to invest. Furthermore, current energy transition investments by companies should be taken into account.