HELESINKI: Finnish stainless steel producer Outokumpu said last week it wants a level playing field concerning European Union energy taxes in order to maintain its competitiveness in export markets. The Finnish government has set up a working group to prepare a plan to reduce business subsidies for energy by Feb. 28, the steelmaker said.
It’s important the working group doesn’t propose changes to current tax solutions in connection with energy tax rebates and electricity
emissions’ compensation, Outokumpu added in a statement sent to Kallanish, sister publication of Kallanish Energy.
The EU Energy Tax Directive imposes minimum taxes on electricity for industries and services of €0.05/kWh ($0.06/kWh), the steelmaker said.
In Finland, the electricity tax for industry is €0.69/kWh ($0.80/kWh), or roughly 12 times the EU minimum. Even after tax rebates, it is about four times as much. In Sweden for example, industry pays the electricity tax only at the minimum rate allowed by the EU, which is a significant competitive advantage that affects both investments and orders, Outokumpu adds. The stainless steel producer estimates the removal of subsidies would cost the company €20 million/year ($24.39 million/y). Due to the extremely tight competitive situation of stainless steel, the removal of the rebate system would force Outokumpu into major structural changes, production transfers outside Finland and cutting staff costs in Finland,” the company warned.
