Brussels, 26/05/2010 (Agence Europe) - The European Commission has authorised a scheme designed to remunerate companies for the provision of instant interruptibility services (the acceptance of power cuts to avoid black outs) in Italy's largest islands, Sardinia and Sicily. The Commission has concluded that the scheme, which is limited to three years, does not constitute state aid, because it remunerates at market price a service, which is necessary to ensure the continuity of electricity supply on these islands. The electricity networks on these islands are subject to structural weaknesses (particularly the insufficient electrical interconnection with the mainland, the presence of large but obsolete power plants which are prone to outages and a high proportion of unpredictable wind-power generation).
The network operator will therefore tender out 500 MW of interruptible capacity in Sicily and Sardinia. The tender conditions are not restrictive, as the minimum consumption threshold is only 1 MW. According to Italy, a sufficient number of companies are able to meet the tender criteria on both islands. The scheme will last for three years and companies must commit to provide interruptible resources for the whole period.
The Commission concluded that, since there is a genuine short-term need for more interruptible resources and since the remuneration, which is established by public tender, should in principle reflect the market value of the service provided, the measure does not constitute state aid. This conclusion, which is based on an analysis of the current situation on the islands, is limited to the duration of the scheme. (F.G./transl.fl)