The Lithuanian Competition Council has concluded that a proposed excise duty exemption for biogas qualifies as state aid and will require approval from the European Commission (EC) before implementation. The Ministry of the Environment’s draft Excise Law seeks to exempt biogas from excise rates to support its production and expand its use in Lithuania’s energy supply, as part of efforts to reduce climate impact.
The Council concurred with the Ministry of Finance’s assessment, affirming that the excise relief constitutes state aid under EU rules, necessitating EC approval to ensure compliance. According to EU state aid regulations, member states must notify the EC about proposed state aid measures, unless these measures meet specific exemption criteria set out by the EC. Unapproved state aid may be deemed illegal and could be subject to recovery with interest if determined by a national court or the EC.
The Competition Council emphasized the need for early assessment of any potential competitive impacts and compliance with state aid regulations during the legislative drafting process. The Council also offers guidance through consultations, training sessions, and online resources to aid government agencies and institutions in navigating state aid regulations effectively.
Source: https://kt.gov.lt/lt/naujienos/akcizu-lengvata-biodujoms-turi-buti-suderinta-su-europos-komisija
