92000E0686

WRITTEN QUESTION E-0686/00

by Bárbara Dührkop Dührkop (PSE) to the Commission

(9 March 2000)

Subject: State aid from the Spanish Government to the electricity sector

Does the Commission intend to approve the Costs of Transition to a competitive system for the Spanish electricity companies, which amount to ESP 1,3 billion?

Answer given by Mr Monti on behalf of the Commission

(18 April 2000)

As part of the liberalisation of the electricity market pursuant to European Parliament and Council Directive 96/92/EC of 19 December 1996 concerning common rules for the internal market in electricity(1), the Spanish authorities earmarked approx ESP 1 300 000 as compensation for the costs of transition to competition. On 29 January 1999 the Spanish authorities notified

these measures under Article 24 of the above Directive, the first paragraph of which lays down that those Member States in which commitments or guarantees of operation given before the entry into force of this Directive may not be honoured on account of the provisions of this Directive may apply for a transitional regime which may be granted to them by the Commission, taking into account, amongst other things, the size of the system concerned, the level of interconnection of the system and the structure of its electricity industry. The Commission shall inform the Member States of those applications before it takes a decision, taking into account respect for confidentiality. This decision shall be published in the Official Journal of the European Communities. At the same time the Spanish authorities notified these measures, as required, under Article 88(3) (former Article 93) of the EC Treaty (state aid).

On 8 July 1999, the Commission took a decision stating that these measures were not covered by Article 24 of the Directive but should be examined in the light of the rules relating to state aid and, in particular, Article 87(3)(c) (former Article 92) of the EC Treaty(2). The Spanish authorities lodged an action for annulment of this decision, currently pending before the Court(3).

The Commission is also examining the case as a non-notified aid, because the measure came into force before it was notified under Article 88(3). The Commission will take a decision as soon as possible.

(1) OJ L 27, 30.1.1997.

(2) OJ L 319, 11.12.1999.

(3) Case C-369/99 Kingdom of Spain v. Commission.