91998E0776

WRITTEN QUESTION P-0776/98 by Elly Plooij-van Gorsel (ELDR) to the Commission (5 March 1998)

Subject: French legislation on liberalization of the electricity market

A number of Member States are amending their laws on the production and distribution of electricity in connection with the liberalization of the electricity market.

1. Is the Commission aware that France is preparing, or has already adopted, changes to the law in which the 'réseau d'alimentation générale en énergie électrique' is assumed to be the property of Electricité de France (EDF) since it owns the concession for this supply system?

2. Can the Commission look into whether the concession which EDF has had from the French state hitherto provides for ownership of the electricity grid passing to EDF on termination of the concession?

3. If this is not the case, does the Commission feel that the purpose of this amendment to the law is to increase the EDF's own assets by transferring ownership of the electricity grid free of charge, thereby placing EDF in a favourable competitive position on a liberalized electricity market?

4. If so, is this a form of state aid compatible with the EEC Treaty?

Answer given by Mr Van Miert on behalf of the Commission (26 March 1998)

The Commission is not aware of a draft law by which the French authorities would transfer the ownership of the electricity distribution network to Electricité de France (EDF) at the expiry of the concession.

The transfer of this network from the state to EDF without any appropriate transfer price might unduly increase the total assets of EDF, thus granting an economic advantage to the undertaking.

The Commission will investigate the circumstances reported in order to assess whether they are compatible with the provisions of the EC Treaty.