92002E3470

WRITTEN QUESTION E-3470/02

by Luis Berenguer Fuster (PSE) to the Commission

(6 December 2002)

Subject: Shortfall in revenue from electricity sales in Spain possible illegal state aid?

According to the Spanish Government's proposals concerning electricity tariffs, the electricity companies' revenue shortfall will be made good (during the 2003-2010 period) by means of a new tariff component which the companies will be legally entitled to charge.

These proposals may well constitute a new attempt by the Spanish Government to allocate indirect aid to Spanish electricity companies by granting the official authorisation which it was required to withdraw in the case of power and heat supply stations, on account of the Commission's unequivocal stance on the matter.

Does the Commission not consider that such proposals may involve the provision of illegal state aid to Spain's electricity companies?

Answer given by Mr Monti on behalf of the Commission

(24 January 2003)

On 25 July 2001 the Commission decided, in the light of the state aid rules, not to raise any objection to the transitional scheme for competition transition costs (CTCs) on the electricity market in Spain(1).

It has not been informed of the definitive version of the new system of electricity tariffs in Spain. However, according to the preliminary explanations provided by the Spanish authorities, the new system does not at the moment entail any substantial change in the CTC scheme, particularly as regards either total CTCs or the maximum duration of the scheme. Accordingly, fresh notification of the scheme in line with Article 88(3) of the EC Treaty does not seem necessary.

In any event, the Commission is determined to ensure that the conditions laid down in its decision of 25 July 2001 are complied with by the Spanish authorities and, in this connection, it will examine the annual reports on the application of that decision that they are required to send to the Commission and any legislative or regulatory change in the way CTCs are applied.

(1) Decision of 25 July 2001 in Case NN 49/59 Spain (OJ C 268, 22.9.2001). The full text of the decision is available at the following Internet site: http:/europa.eu.int/comm/secretariat_general/sgb/state/_aids.