1. Excise on electricity as an EU own resource in the light of sustainable development
Maciej Cieślukowski
Poznań University of Economics and Business
Department of Public Finance

2. Why the excise on electricity?
Common market of electric energy (Emission Trading System, Directive 2003, Directive 2011)
Excise on electricity in Poland since March 2002 (0,02 PLN/KWh)
No previous investigations on the excise on electricity as EU own resource

3. Objective, hyphothesis, methodics
To investigate if the excise on electricity meets criteria of fair taxation between citizens
Hyphothesis
The excise on electricity does not ensure fair taxation between consumers
Methodics
If and how the excise is shifted (multi-variable regression),
Who suffers higher tax burden: the poorer or richer? (tax burden decomposition – Pearson concentration coefficient)
Subject of analysis
Polish households in the years 1993 – 2014; 2006 and 2014

4. Market of electricity in Poland
Date
Institutional changes
Introduction of VAT (7% on the electric energy) and the excise tax (electric energy is free of the duty)
Energy Regulatory Office (ERO) is established. President of ERO i.a. regulates and promotes the market, counters the monopoly practices, approves the tariffs of energy companies
Replacement of the official prices of electric energy set by Ministry of Finance by the separate tariffs for electric energy and its distribution, calculated (according to official rules) by the energy companies (producers and distributors). President of ERO controls and approves the tariffs every year
Polish Power Exchange (PPE) is opened
President of ERO liberates prices for energy producers - he stops approving the tariffs
Introduction of the excise duty on electric energy (0,02 PLN/KWh). The tax is paid by energy producers
Poland enters the European Union and is obliged to meet the rules of the electric energy market Directive (2003/54/WE). VAT rate on electric energy increases up to a standard rate 22%
Division of distribution into distribution and trade. Liberalization of the energy trade market. The final consumers (including households) are free in a choice of the electric energy direct supplier (a trade company) on a domestic market
The subject to excise taxation is shifted from energy producers to traders. The traders can formally shift the excise duty on the final consumers and the tax is showed on the invoice
The VAT standard rate increases up to 23%

5. Structure of the market in Poland
Formal excise payer since March 2002
25 main producers of electricity,
1 transmission operator,
5 main distributors,
5 main trade companies
59 other small trade companies
Formal excise payers since March 2009

6. Regression model
Alm J., Sennoga E., Skidmore M., 2009, Perfect Competition, Urbanization, and Tax Incidence in the Retail Gasoline Market, “Economic Inquiry” 47, no 1, p. 118 – 134.

7. Main results

8. Calculation of the average monthly excise duty amount paid by particular types of the households per capita in 2014

9. Calculation of the average monthly excise duty amount paid by particular types of the households per capita in 2006

10. Person concentration coefficient (K) for the years 2006 and 2014

11. Conclusions
In the years 1993 – 2014 the excise duty is even over-shifted on the households.
The households in Poland in the years 2006 and 2014 with the relatively lower available income (particularly pensioners and farmers) are clearly taxed with relatively higher burden.
The excise duty decreases the concentration of available income between analyzed types of the households very slightly.
We need futher investigations in other Member States.

12. Excise on electricity as an EU own resource in the light of sustainable development
Maciej Cieślukowski
Poznań University of Economics and Business
Department of Public Finance