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Europe Daily Bulletin No. 8792

24 September 2004
Contents Publication in full By article 32 / 38
GENERAL NEWS / (eu) eu/state aid
Commission authorises public compensation for stranded cost in Portugal

Brussels, 23/09/2004 (Agence Europe) - On 22 September the Commission today decided not to raise objections to the State refunding three Portuguese energy providers, EDP, Tejo Energia, Turbogás for so-called “stranded costs”. In the case at issue, stranded costs arise because old power plants built prior to February 1997 - i.e. prior to liberalisation -- will not be sufficiently efficient to be able to face a competitive electricity market.

As Portugal opens its electricity markets to...

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