91999E2683

WRITTEN QUESTION E-2683/99

by Luis Berenguer Fuster (PSE) to the Commission

(12 January 2000)

Subject: Competition law and the Spanish electricity sector

In October the Spanish Government announced that if approval were not granted for aid to cover the costs of transition to competition (CTCs) for the electricity companies, consumers' bills would rise. The body representing the electricity industry recently reiterated this point, in an attempt to reinforce the idea that these measures, currently under investigation by the European Commission as state aids, are positive.

Quite apart from the fact that it does not appear to make sense, this announcement demonstrates that although the liberalisation of the electricity sector has gone through, the companies enjoy a position of joint dominance which allows them to fix their prices with the government without reference to competitors, since none in fact exist.

Does the Commission agree that these assertions by the Spanish Government and the electricity companies prove that competition does not exist within the Spanish electricity industry?

Answer given by Mr Monti on behalf of the Commission

(25 February 2000)

The Spanish government has notified the Commission of its plans to grant the companies in the electricity sector a financial compensation in order to help their adaptation to competition following the liberalisation of the sector under Directive 96/92/EC of the Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity(1).

At present, the Commission is closely examining this notification. The Commission has not yet finalised this examination, and can thus not communicate its results yet.

The Commission has not recently made any other investigation on competition in the electricity sector in Spain. Therefore, the Commission is currently not in a position to reply to the question of the Honourable Member.

(1) OJ L 27, 30.1.1997.