As part of the fiscal package providing funding for the Dutch Climate Agreement, the government’s 2020 tax programme includes a shift in the burden of the ODE energy surcharge from private consumers to industry. As a result, large-scale energy users, including industry, are likely to face higher costs.
This study focuses on the impact of the higher ODE surcharge for industry, in particular the paper, chemicals and food processing sectors. Specifically, the impact on several financial indicators and on greening of production was assessed. If measures to reduce energy use are available, the ODE burden can be decreased.
Financially, the higher ODE rates will lead to a major increase in ODE tax burden, from 100% to 500% for the sectors in question, with the average for industry as a whole at the lower end of this range (140%).
The new ODE scheme for 2020 was rolled out at short notice, giving companies no time to anticipate and implying there are likely to be little if any material changes in 2020 and 2021. From 2022 to 2025 we anticipate perhaps 10% reduction of gross ODE burden. In the long term (2025-2030), with growing scope for energy efficiency measures, this may rise to a maximum of 25-35% avoidable ODE burden.
There is also a ‘synthesis report’ comparing the results of various studies (PWC, KPMG, WECR, CE Delft) on the financial burden of the ODE shift.
Nico van de Velden (WEcR)