91999E0264

WRITTEN QUESTION E-0264/99

by Jesús Cabezón Alonso (PSE) to the Commission

(17 February 1999)

Subject: State aid for Spanish electricity companies

According to the calculations of the Spanish Government, the deregulation of the electrical energy market will imply extra costs for the Spanish electricity sector. In order to limit these costs, the Spanish Government has asked the Commission to agree to the allocation of 1.37 billion pesetas to the sector by way of compensation for opening up the Spanish electricity market to competition.

Is this aid compatible with the legal framework of the European Union on free competition?

Will the Commission initiate a procedure or investigation to ensure that this action does not imply a distortion of competition?

Answer given by Mr Van Miert on behalf of the Commission

(18 March 1999)

On 18 February the Spanish authorities notified the Commission of their transitional regime for the electricity market in accordance with Article 24(2) of Parliament and Council Directive 96/92/EC of 19 December 1996 concerning common rules for the internal market in electricity(1), and on 29 January 1999 they made the notification required by Article 93(3) of the EC Treaty.

The Commission is currently examining these notifications; it is therefore too early to arrive at any conclusions regarding the nature of the measure and its compatibility with the Community competition rules or the need for Article 93(2) proceedings.

(1) OJ L 27, 30.1.1997.