Corona and Energy Law

The coronavirus (COVID-19) keeps affecting all areas of life and also impacts upon energy law. This blog entry provides a first overview of energy law measures that selected European countries (Germany and the Netherlands) have taken to tackle the energy-related repercussions of the corona-crisis.

Germany                                                          
The legislator in Germany reacted in early March and established three so called ´moratoria´ for the duraction of three months: one safeguarding tenants who cannot pay their rent anymore, one affecting private borrowers and a third one that applies to electricity and gas customers. The latter regulates so called ´essential public services´. It stipulates that customers who are not able to pay their electricity and gas instalments due to the corona-crisis shall be protected against termination of their electricity and/or gas contracts for three months (1 April 2020 until 30 June 2020). Only if they are still unable to pay after 30 June may the termination of contracts be contemplated. The customer has to substantiate that the cause for the payment-backlog is the corona-crisis. The new rule features in article 240 EGBGB (Einführungsgesetz zum Bürgerlichen Gesetzbuch), that has been amended for this purpose by the German Bundestag.


Netherlands
The gas and electricity transmission and distribution grid operators in the Netherlands take a similar route - although currently on a voluntary basis. According to their industry-body Netbeheer Nederland, grid operators are `restraining´ their activities to cut off customers that are unable to pay their bills due to the coronacrisis. The government of the Netherlands, is concerned about the reliability of all energy grids and wants to ensure they are still being maintained and can work as ususal. Interestingly in the Netherlands the discussion of corona repercussions in the energy sector focuses on the issue of renewable energy subsidies and public participation in renewable energy projects.
The Netherlands is currently in the midst of a transition, during which its renewable energy subsidy scheme SDE+, that has been running since 2011, will be switched to the so called SDE++ (Stimuleringsregeling Duurzame Energietransitie) scheme in 2020. The difference between the two schemes is that under SDE++ not only renewable energy, but also other technologies that are able to result in CO2 reductions may apply for subsidies. The industry body Netherlands Wind Energy Association (NWEA), in a first assessment of corona impacts for wind energy warned that it will be difficult to meet the deadlines for applications in the SDE++ round in upcoming fall, due to local authorities being slow to issue relevant permits, due to corona.
Furthermore, the minister of economic affairs and climate policy, Eric Wiebes, explained to parliament that the implementation of the Dutch Climate Accord, that has been discussed earlier on this blog, may be delayed. The 30 regional energy strategies that need to be created under the Dutch Climate Accord include several public participation measures, particularly with a view to big solar energy projects. The point in time when the Regional Energy Strategies need to be presented to the government has now been roled back to 1 October 2020 (instead of 1 June 2020) to allow for additional time for public participation in the regions.

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