91997E1320

WRITTEN QUESTION E-1320/97 by Gerhard Schmid (PSE) to the Commission (11 April 1997)

Subject: Limit of liability for nuclear power stations

Under paragraph 13(3) of the German Atomic Energy Law, prudential reserves to cover liability for damages incurred by nuclear power station operators are limited to DM 500 million. The damage caused by a serious accident in a nuclear power station would be far higher, and the state would therefore have to provide compensation for damage exceeding this sum.

1. Does this provision constitute indirect state aid which would require approval?

2. Does this provision constitute a distortion of competition vis-à-vis other electricity producers?

Answer given by Mr Van Miert on behalf of the Commission (4 June 1997)

The provisions on liability for nuclear damage of the German atomic energy law are not at variance with existing international nuclear third party liability conventions, as far as it provides for partial compensation for damage by the state. Under the Vienna Convention on civil liability for nuclear damage as well as the Paris Convention on third party liability in the field of nuclear energy, the operator of a nuclear installation is required to provide financial security covering liability for nuclear damage in such amounts as specified by the installation state. Such security can be provided by insurance or other financial security, i.e. a state guarantee. The Brussels Convention, supplementary to the Paris Convention, to which Germany, like most Member States is a party, specifically requires that, as of a certain amount and up to a fixed ceiling, compensation for nuclear damage be provided out of public funds to be made available in first instance by the contracting party where the nuclear installation of the operator is situated and on top of that by contracting parties to that Convention according to an agreed formula.

Therefore, the provision in question does not seem to constitute state aid within the meaning of Article 92 of the EC Treaty. It is based on an international agreement aiming at establishing a generally applicable security framework for risks from nuclear activities. Each energy sector is subject to certain rules regarding safety or environmental protection which correspond to the distinctive nature of the various energy resources. However, even if considered as state aid the provisions would probably fall under the derogation of Article 92(2)(b) as they intend to make good the damage caused by exceptional occurrences.