Freshfields has advised RWE/Essent in its litigation against the Dutch government on a measure which would impose a tax on use of coal in coal-fired electricity plants

Freshfields Bruckhaus Deringer LLP (‘Freshfields’) has advised RWE/Essent in its litigation against the Dutch government on a measure which would impose a tax on use of coal in coal-fired electricity plants (‘Dutch coal tax’). RWE/Essent is the largest energy company in The Netherlands.

The Appeals Court of Den Bosch found that the Dutch coal tax is contrary to an EU Directive on energy taxation and therefore the tax could not be charged to RWE/Essent. The Court was unconvinced that the tax was introduced on the basis of ‘environmental policy considerations’, as required by the EU Directive. It has been reported in the press that the judgment, which may be subject to further appeal at the Dutch Supreme Court, could lead to a tax restitution to RWE/Essent in excess of EUR 100 million.

The Freshfields team consisted of partner Winfred Knibbeler, counsel Job van der Pol, senior associate Alvaro Pliego Selie and associates Noor Blauw and Max Immerzeel.