Brussels, 05/04/2006 (Agence Europe) - The European Commission has opened an investigation into a subsidy of 16 million euros which Italy wants to grant to the local electricity company AEM Torino. This aid is to cover costs linked to the liberalisation process of the electricity sector (“stranded costs”). In the past, AEM benefited from illegal aid which it has not yet repaid, said the Commission, which is now unable to authorise new aid to such a company. The Commission also fears that this new aid may infringe Community rules and distort competition. The municipality of Turin is a 70% shareholder in the company, which had a turnover of 891 million euros in 2004. Italy notified intention to grant aid for stranded costs to so-called “municipalizzate” enterprises, but calculations have shown that only this one company would be able to benefit from the aid.