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Document 91999E000492

    WRITTEN QUESTION No. 492/99 by Ludivina GARCÍA ARIAS Inclusion in the budget of public aid used to subsidise the electricity sector's transition costs

    Dz.U. C 325 z 12.11.1999, p. 118 (ES, DA, DE, EL, EN, FR, IT, NL, PT, FI, SV)

    European Parliament's website

    91999E0492

    WRITTEN QUESTION No. 492/99 by Ludivina GARCÍA ARIAS Inclusion in the budget of public aid used to subsidise the electricity sector's transition costs

    Official Journal C 325 , 12/11/1999 P. 0118


    WRITTEN QUESTION P-0492/99

    by Ludivina García Arias (PSE) to the Commission

    (25 February 1999)

    Subject: Inclusion in the budget of public aid used to subsidise the electricity sector's transition costs

    Amongst the new provisions introduced under Decision No 3632/93/ECSC(1) establishing Community rules for state aid to the coal industry was one to the effect that public financing mechanisms such as the aid provided by the Spanish OFICO (Electricity Compensation Office) which are used to compensate for coal producers' operating losses and other exceptional costs by means of a percentage deducted from the amounts invoiced to electricity consumers "shall be authorised only if they are entered in the Member States" national, regional or local public budgets', in order to increase the transparency of the aid and hence improve the monitoring thereof.

    Does the Commission not therefore consider that the same principle should be applied (on the basis of the principles of equal treatment and of the transparency and monitoring of public aid) to the transition costs incurred by the electricity sector in the process of opening itself up to competition?

    How would the Commission legally justify different treatment of the two types of aid?

    Answer given by Mr Van Miert on behalf of the Commission

    (23 March 1999)

    The Commission is examining the notifications given by different Member States of the schemes they intend to apply in order to offset certain costs arising in connection with Parliament and Council Directive 96/92/EC of 19 December 1996 concerning common rules for the internal market in electricity(2).

    The legal basis for examining such costs is different from that for aid to the coal industry (ECSC Treaty), and this may justify separate solutions. Under Articles 92 and 93 of the EC Treaty, and unless specifically provided for, there are no particular rules on how aid that has been declared compatible with the common market should be financed. Accordingly, the financing arrangements involve, in principle, an economic policy decision falling within the remit of the Member State concerned.

    (1) OJ L 329, 30.12.1993, p. 12.

    (2) OJ L 27, 30.1.1997.

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