Benefit from our expertise in the energy sector

The energy industry must not only secure the energy supply. It is responsible for ensuring that electricity and gas are affordable and that energy sources become environmentally friendly. In order to achieve this, structures that have been in place for a long time must be adapted to digitalization and the constant changes in the market. Strong regulations, complex customer needs, climate protection and technological innovations set the framework conditions for successfully dealing with the energy transition.

An intensive examination of topics such as municipal infrastructure management, hydrogen and renewable energies, electromobility and smart cities is essential for energy suppliers, grid operators and municipal administrations in order to remain competitive and fit for the future.

Topics of this page incl. services and contact persons

    Energy industry consulting

    The energy sector is undergoing profound change, which entails both opportunities and challenges. Technological advances, adaptation to market and customer needs and increased regulation must be implemented in line with financially viable energy policy objectives. Our team of experts will help you to future-proof your company and successfully shape the energy transition.

    Our focus is on efficient project implementation and clear communication in order to take into account the interests of all parties involved.

    Key issues:

    • Municipal heat planning
    • Hydrogen
    • District heating
    • Regulation
    • Renewable energies
    • Sustainability (ESG)

    To the key issues

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    Audit of annual and consolidated financial statements

    We follow a standardized audit approach with a central audit strategy that defines the key audit issues and scope of the audit customized for each individual engagement. Such approach focuses on your company’s key risks, avoids redundancies and ensures that the audit is completed effectively and efficiently without any surprises.

    Based on our comprehensive industry knowledge, in-depth understanding of market conditions and your business processes, we develop an audit strategy tailored to your individual needs. A key component of our audit approach is the assessment of your internal control and risk management system’s effectiveness. This allows us to significantly reduce the number of individual audit procedures. At the same time, our audit approach promptly identifies process-related potential for improvement.
    IT-supported business processes are of particular importance in the context of the structural and functional audit of the accounting-related internal control system (ICS). We only use digital audit files as part of our annual audits. The accounting and controlling data provided by you is evaluated digitally using special analysis tools (such as IDEA or ActiveData).

    Due to the extensive digitalization of our audit, we carry out mere audit and documentation work only in our offices. We use the time on site exclusively for solution-oriented communication with the relevant contact persons. The virtual auditor’s room saves travel time, reduces the burden on your infrastructure and your employees. It guarantees efficient auditing and ensures our high audit quality. On request, we can use our modern video conferencing system for meetings.

    Daniel Deutsch

    Partner

    German CPA, Certified Tax Advisor

    Dirk Luther

    Partner

    German CPA, Certified Tax Advisor

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    Audit pursuant to Art. 53 HGrG

    A significant extension of the audit engagement is the audit pursuant Art. 53 HGrG (German law on budgetary procedures), which we perform according to a holistic approach on the basis of IDW Auditing Standard 720. Such standard covers all areas relating to the compliance of the management organization, management tools and management activities as well as the net assets, financial position and profit situation.

    We do not respond to these issues in an isolated manner, but integrate them into the ongoing audit process. Over the course of a multi-year audit cycle, we focus on different areas each year.

    Matthias Appel

    German CPA, Certified Tax Advisor

    Dirk Luther

    Partner

    German CPA, Certified Tax Advisor

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    Special audits in accordance with energy law regulations (EEG, KWKG, StromNEV, KAV)

    Equipped with commercial and technical expertise, we perform all special audits in accordance with the Renewable Energy Sources Act (“EEG”), the Combined Heat and Power Act (“KWKG”), the Electricity Grid Charges Ordinance (“StromNEV”) and the Concession Fees Ordinance. We have competent experts for all audit-relevant issues relating to renewable energies, such as photovoltaic/solar systems or combined heat and power plants or balancing group management, EEG levy, feed-in tariffs, electricity volume balance, marginal price comparison, German Federal Network Agency, state regulatory authorities, transmission system operators, gross value added, electricity cost intensity, Federal Office for Economic Affairs and Export Control (“BAFA”) and BAFA leaflets.

    Markus Fritz

    Senior Manager

    German CPA, Certified Tax Advisor

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    Audit opinions/certificates for utility companies, audits and certificates under state aid law

    We issue audit opinions and certificates for transport companies, such as audits in accordance with the German Social Code (“SGB”) and the Passenger Transport Act (“PBefG”), audits of fare revenue losses, verification of equity capital statements and separate accounting, audits of non-overcompensation, audits under Regulation (EC) No. 1370/2007, as well as audits of fare revenue distribution within transport associations.

    Daniel Deutsch

    Partner

    German CPA, Certified Tax Advisor

    Dagmar Liphardt

    Senior Manager

    German CPA, Certified Tax Advisor

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    Internal audit

    For listed and large corporate groups, internal auditing is a matter of course. However, ensuring compliance is also of paramount importance in medium-sized and smaller utility companies and municipal corporations. For the management, internal audits are an important element of risk management. Not every utility company has the necessary resources, capacity and expertise to have its own internal audit department. This is where we can support you. Based on our comprehensive knowledge of the organization and the risk potential of utility companies, we develop an annual audit plan in consultation with management, perform the audit work and report on the results to management and the supervisory body. Our reports not only present the pure results, but also highlight potential for improvement and measures to eliminate deficiencies.

    Daniel Deutsch

    Partner

    German CPA, Certified Tax Advisor

    Dagmar Liphardt

    Senior Manager

    German CPA, Certified Tax Advisor

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    Organizational consulting

    • Introduction and optimization of the process for preparing annual financial statements and all other financial processes, development of process descriptions, staffing plans, risk manuals as well as accounting and capitalization guidelines 
    • Introduction and optimization of integrated corporate planning
    Daniel Deutsch

    Partner

    German CPA, Certified Tax Advisor

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    VAT

    VAT affects every company and is certainly one of the most complex types of tax. Dealing with this high level of complexity regularly poses a major challenge for public utilities. It often involves considerable effort to correctly recognize certain transactions for VAT purposes. To make matters worse for the utilities industry, the tax authorities are increasingly focusing on public sector companies with regard to their VAT obligations. In tax audits, there is an increasing focus on the right to deduct input tax, the correct preparation of invoices and VAT credit notes as well as the completeness of tax returns and declarations.

    Specific problem areas and risks from a VAT perspective include, for example

    • the correct creation of VAT credit notes for feed-in systems, 
    • the complete identification and legally compliant processing of reverse charge transactions (e.g., proof of reseller status for electricity/gas, treatment of foreign transactions), or 
    • the treatment of the “municipal discount”.

    Master the high complexity of VAT with the expert knowledge of Baker Tilly’s Energy sector team. Together we will minimize VAT risks for your company and create legal certainty.

    • VAT risk management 
    • Review, structuring and optimization of national and cross-border supplies and services 
    • Optimization of input tax deduction 
    • Support with VAT audits 
    • Conducting objection and appeal proceedings in the area of VAT 
    • VAT reviews, VAT IT system audits and VAT quick checks 
    • VAT compliance 
    • VAT due diligence audits for corporate and real estate transactions 
    • In-house training
    Enno Thönnes

    Partner

    Attorney-at-Law, Certified Tax Advisor

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    Tax Compliance

    The high complexity of tax law, increasing requirements on the part of the tax authorities regarding the fulfillment of tax obligations and constant legal changes, e.g., in the area of electricity and energy tax, pose major challenges for energy supply companies in particular. An inadequate and incorrect assessment of tax issues or organizational gaps in the tax declaration process can quickly lead to taxes not being paid, not being paid on time or not being paid in the correct amount, which can result in tax evasion. In these cases, there is a latent risk of fines or criminal tax proceedings being initiated.

    In a letter dated May 16, 2016, the German Federal Ministry of Finance (BMF) stipulated that the existence of a tax compliance management system (TCMS) in accordance with the IDW PS 980 auditing standard can be an indication against the assumption of tax evasion or tax fraud. An effective internal TCMS as a central component of an intact corporate culture also has numerous other advantages (e.g., process optimization) and generates added value for your company not only for liability purposes.

    In order to develop a practicable tax compliance management system tailored specifically to your company, it is essential to combine tax, legal and business aspects as well as procedural processes.
    Baker Tilly provides you with an interdisciplinary team of auditors, tax advisors, lawyers and business consultants in the energy sector, with particular expertise in the energy industry. 
     

    After assessing the existing TCMS structure, we work with you to develop a risk analysis, which we summarize in a risk-control matrix. Based on this, we adapt your tax processes accordingly and implement the TCMS in your general compliance structure.

    • Risk analysis in order to determine existing tax compliance requirements and the need for further steps to be taken
    • Support with the implementation of a holistic tax compliance system 
    • Cooperation in the documentation of the tax compliance management system 
    • Ongoing support in the further development and maintenance of existing tax compliance management systems 
    • Audit / certification of the tax compliance management system in accordance with IDW PS 980 in the form of an appropriateness and / or effectiveness audit.
    Dr. Michael Klett

    Partner

    Attorney-at-Law (Rechtsanwalt), Certified Tax Advisor

    David Leist

    Director

    German CPA, Certified Tax Advisor

    Kerstin Rahn

    Senior Manager

    Certified Tax Advisor

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    Electricity tax and energy tax

    As taxpayer for electricity tax and energy tax, energy supply companies are regularly confronted with various electricity and energy tax issues. However, companies that are not “traditional” energy suppliers can also be subject to the corresponding obligations as suppliers or natural gas suppliers under electricity tax law.

    In addition to the obligations for taxpayers, the Electricity Tax Act and the Energy Tax Act as well as the corresponding implementing ordinances provide for a range of preferential treatment options, for example, for operators of electricity generation plants or for companies in the manufacturing industry. Frequent changes to the legal basis, various links to business areas outside the area of taxation as well as strict formal and deadline requirements contribute to a high level of complexity and regularly present both taxpayers and applicants with new challenges.

    Range of services

    • Preparation of tax returns and applications for relief, in particular for energy supply companies, manufacturing companies and operators of electricity generation plants 
    • Review of electricity and energy tax documents prepared by the company, taking into account current case law, changes to legislation and regulations and administrative opinions 
    • Advice on various issues relating to electricity and energy tax 
    • Tax compliance management system (TCMS) 
    • Energy cost optimization
    Karin Schlegel

    Senior Manager

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    Energy cost-intensive companies

    The electricity price is made up of various components. The production costs for “pure energy” account for a rather small proportion. A significant proportion is accounted for by statutory levies, charges and taxes, such as the EEG levy, the CHP levy and the electricity tax. Reduction options for electricity cost-intensive companies are provided for many of these statutory price components. These are often accompanied by strict formal and time-limited application and reporting processes. Electricity cost-intensive companies are therefore faced with the challenge of making the best use of the available opportunities and keeping track of the frequently changing legal framework.

    Range of services

    • Legal advice on the various electricity price reduction options 
    • Advice on electricity tax and energy tax 
    • Preparation or review of applications for electricity and energy tax relief
    • Preparation of energy certificates (e.g., for claiming the special equalization scheme under the EEG)
    Markus Fritz

    Senior Manager

    German CPA, Certified Tax Advisor

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    Environmental energy law

    Environmental energy law not only affects operators of EEG and CHP plants, for which, for example, financial support for the generated electricity, grid connection requirements and the necessary permits are regulated by law. Environmental energy law also affects a large number of companies that are obliged to comply with energy efficiency requirements for various reasons. Such requirements originate, for example, from building energy law or are aimed at manufacturers or distributors of energy-related products. Many companies are also obliged to perform energy audits or operate energy management systems for various reasons. 
    Environmental energy law also includes the European and national requirements for emissions trading.

    Range of services

    • Legal advice on environmental energy law, in particular 
    • Renewable Energy Sources Act (EEG), Combined Heat and Power Act (KWKG) 
    • Energy plant law 
    • Climate protection law 
    • Energy efficiency law
    Jens Suhrbier

    Partner

    Attorney-at-Law (Rechtsanwalt)

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