Brussels, 25/01/2007 (Agence Europe) - The European Commission has opened a formal investigation, under EC Treaty state aid rules, into potential aid to large and medium-sized companies and to the electricity incumbents in Spain, in the form of artificially low regulated industrial tariffs for electricity. The regulated tariffs led to a deficit of €3.8 billion in the Spanish electricity system in 2005. This deficit will be financed by a new charge paid by all Spanish consumers in their electricity bill for the next 14 years.
The Commission will assess whether the 2005 tariffs constituted state aid. If this proves to be the case, to what extent could it give rise to disproportionate distortions of trade in the Union's energy market?
The Commission's state aid investigation does not concern the regulated tariffs for small companies and households. The investigation should not be confused with another ongoing investigation either, which aims to determine the compatibility of these same tariffs (in several countries, including Spain) with the directive on liberalisation (EUROPE 9326).
The decision to open an investigation gives interested parties an opportunity to comment on the proposed measure. The spokesperson for the competition commissioner explained that the results would determine whether the Commission would be able to ask for this aid to be recovered, but informed the press in no uncertain terms that this would not prejudge the outcome of the investigation. (cd)