91999E0511

WRITTEN QUESTION E-0511/99

by Ludivina García Arias (PSE) to the Commission

(8 March 1999)

Subject: Criteria to assess non-profit-making investment in the future of the European electricity sector

What competition policy criteria does the Commission intend to adopt to assess non-profit-making investment effected by the electricity sector arising out of the universal service obligations established within regulatory frameworks prior to the liberalisation introduced by Directive 96/92/EC(1)? Does it intend to consider only the economic evaluations submitted by undertakings and Member States, or will it compare them with independent audits which take the established market value into account? Are its administrative services sufficiently capable of ascertaining whether a part of the investment was financed from State aid at any time?

(1) OJ L 27, 30.1.1997, p. 20.

Joint answer

to Written Questions E-0510/99 and E-0511/99 given by Mr Van Miert on behalf of the Commission

(12 April 1999)

The Commission is examining the notifications given by different Member States of the schemes they intend to apply in order to offset the stranded costs incurred in connection with Parliament and Council Directive 96/92/EC of 19 December 1996 concerning common rules for the internal market in electricity(1). In the decisions which the Commission will be required to take to apply the aforementioned Directive and, where required, Articles 92 and 93 of the EC Treaty, it will give due consideration to all elements which ensure the correct functioning of the electricity market, including, of course, consumer protection.

Given that this is a completely new area, the Commission is currently attempting to draw up specific assessment criteria for stranded costs in the field of State aid, and these criteria will be discussed with the Member States. For information purposes, it can, however, be stated that the aid should cover clearly determined costs arising from commitments made prior to the entry into force of the Directive; that it may not be granted unless it complies with the principle of necessity; that it may not have the effect of protecting the national market from external competition; and that it should be of a degressive nature over a reasonable period. It would seem premature at this stage to specify whether independent experts need to be called in to analyse these elements. The Commission feels that it does, in theory, have sufficient capacity to carry out a proper appraisal of this dossier.

The Honourable Member is referred to the answer given by the Commission to his oral question H-0162/99 during question time at the Parliament's March 1999 part-session(2) and the Commission's answers to written questions E-204/99 by Mrs Frutos Gama(3) and E-264/99 by Mr Cabezón Alonso(4).

(1) OJ L 27, 30.1.1997.

(2) Parliamentary Debates (March 1999).

(3) See page 35.

(4) OJ C 341, 29.11.1999, p. 76.