COVA is a not-for-profit foundation. The State will be liable for any debts of COVA that remain if it should be liquidated.
COVA’s operating costs are funded from a stockholding levy on oil products. This levy amounts to EUR 8 per 1,000 litres, as laid down in Section 27 of the Petroleum Products Stockpiling Act 2012 (Wva).
As a legal person with a statutory task, COVA makes use of State treasury banking and does not have a credit rating. Its annual accounts are submitted for approval to the Minister of Economic Affairs and Climate Policy.
COVA’s key figures
COVA’s operating costs are mostly costs of renting storage facilities. In addition, there are costs of inspection, insurance, logistics and payment of interest on the loans outstanding with the government. The organisation’s expenditure consists of staff costs, accommodation costs and IT. COVA achieved operating surpluses in recent years. These surpluses are used to reduce the debt position, which means that they revert to the State.
COVA’s stocks are valued at historical cost, where necessary adjusted to a lower market value. These stocks represent more than 90% of COVA’s balance sheet total.
Funding of COVA
COVA’s operating costs are funded from a stockholding levy on oil products, imposed on end users of transport fuels. The Petroleum Products Stockpiling Act (Wva) has set the stockholding levy at EUR 8 per 1,000 litres. This levy is imposed in the same way as excise duty. The income which COVA receives from the stockholding levy therefore moves in line with the annual consumption of gasoline, diesel and LPG. Under international arrangements, kerosene used in international aviation is exempt from excise duty and thereby also from the stockholding levy.
COVA funds its oil stock purchases with loans it takes out from the Ministry of Finance, under the terms of State treasury banking. The Ministry of Economic Affairs and Climate Policy guarantees loans up to EUR 1,465 million. This guarantee offers sufficient scope for funding the purchase of the necessary stocks. The Wva provides that the State will be liable for any debts of COVA which remain after its liquidation as a legal person (Section 25 Wva).
As a legal person with a statutory task, COVA is subject to the Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act (WNT) and is therefore included in the WNT-registry. The WNT data forms an integral part of the annual financial report and accounts on which an audit opinion is issued. COVA’s WNT data can be found here.