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Europe Daily Bulletin No. 8840
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GENERAL NEWS / (eu) eu/state aid

Green light to Italian aid for non-recoupable costs after liberalisation of energy market

Brussels, 02/12/2004 (Agence Europe) - The European Commission has authorised Italian aid to the energy sector in order to cover "stranded costs" linked to the liberalisation of the market. These are costs which were borne by the companies before the market was liberalised- a market open which will make it virtually impossible ever to recoup these costs. The planned subsidies are of over 2.3 million EUR, and will go to compensate firstly the costs of nuclear power stations between 2000 and 2003, and on the other, costs related to a contract dating from 1992 on Nigerian gas, which was bought to produce electricity, but which could not be used in Italy as planned. In the first case, the sum of aid will not exceed 850 million EUR, and will be granted to ENEL and those companies which inherited the stranded costs- Endesa Italia, Edipower and Tirreno Power. In the second case, the total paid to ENEL will be limited to 1,465 million EUR, and will take account of the transfer of gas management outside Italy until 2009.

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