G/SCM/Q2/EU/51  
 
25 April 2016  
(16-2316)  Page: 1/8  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
REPLIES TO QUESTIONS1 FROM THE RUSSIAN FEDERATION REGARDING 
THE NEW AND FULL NOTIFICATIONS OF THE EUROPEAN UNION2 
The following communication, dated 25 April 2016, is being circulated at the request of the 
Delegation of the European Union.  
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  Question 1 
 
Bulgaria 
 
Please, explain why the following measures re lating to support of the renewable energy 
sector were not notified in G/SCM/N/253/EU/Add.3 and G/SCM/N/284/EU/Add.3 or provide information required under Article 25 of the SCM Agreement for each of these 
measures: 
  Energy Efficiency Act, Law on Energy Effi ciency; published in the State Gazette No. 
18 of 5 March 2004; 
 Energy from Renewable Sources Act; pub lished in the State Gazette No. 35 of 3 
May 2011 (subsidies by means of Energy Efficiency and Renewable Energy Sources 
Fund). 
Moreover, the above mentioned Energy Strategy  of the Republic of Bulgaria until 2020 of 
December 2012 also provides a framework for certain renewable energy support measures. Please, inform whether such measures were eventually implemented and 
provide information required under Article 25 of the SCM Agreement for each of the 
implemented measures or explain why they should not be notified.  Reply: 
 Bulgarian authorities have notified measures and schemes that were effective during the respective notification period, i.e. 2011-2012 and 2013-2014, in the latest new and full 
notifications G/SCM/N/253/EU/Add.3 and G/SCM/N/284/EU/Add.3 pursuant to Article XVI:1 of 
GATT 1994 and Article 25 of ASCM.  
The legislation referred to in the question of  the Russian Federation regarding the "Energy 
Efficiency Act, Law on Energy Efficiency; pub lished in the State Gazette No. 18 of 5 March 2004" 
was in force until 2008. As of 14 November 2008 and throughout the notification periods 2011-2012 and 2013-2014 a new Energy Efficiency Act was into force. This law regulated the 
                                               
1 G/SCM/Q2/EU/47. 
2 G/SCM/N/253/EU/Add.1, G/SCM/N/253/EU/Add.2, G/SCM/N/253/EU/Add.3, G/SCM/N/253/EU/Add.4, 
G/SCM/N/253/EU/Add.5, G/SCM/N/253/EU/Add.6, G/SCM/N/253/EU/Add.10, G/SCM/N/253/EU/Add.12, G/SCM/N/253/EU/Add.13, G/SCM/N/253/EU/Add.14, G/SCM/N/253/EU/Add.15, G/SCM/N/253/EU/Add.17, 
G/SCM/N/253/EU/Add.18, G/SCM/N/253/EU/Add.19, G/SCM/N/253/EU/Add.24, G/SCM/N/253/EU/Add.27, 
G/SCM/N/284/EU/Add.3, G/SCM/N/284/EU/Add.6, G/SCM/N/284/EU/Add.11, G/SCM/N/284/EU/Add.13, 
G/SCM/N/284/EU/Add.14, G/SCM/N/284/EU/Add.15, G/SCM/N/284/EU/Add.16, G/SCM/N/284/EU/Add.19, 
G/SCM/N/284/EU/Add.20. G/SCM/Q2/EU/51 
 
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  public relations "associated with the implementati on of the state policy for promotion of energy 
end-use efficiency and the provision of energy services", as follows: Governing Bodies;  
National Energy Efficiency Strategy and Energy Efficiency Action Plans; 
Energy Savings Targets; Energy Efficiency Improvement Activities and Measures and Provision of Energy Services 
(e.g. energy efficiency certification and inspection of buildings and industrial systems); 
Availability and Accessibility of Information.   
Subsequently, as of May 2015 a new Energy Efficiency Act came into force. 
 
The Energy Efficiency and Renewable Sources Fu nd (EERSF) was established pursuant to the 
Energy Efficiency Act adopted by the Bulgarian Pa rliament in February 2004. The Fund pursues an 
agenda fully supported by the Government of Bulgaria, but it is structured as an independent legal 
entity, separate from any governmental, muni cipal and private agency or institution. 
 
Among the main objectives of the Energy from Renewable Sources Act (ERSA) published in the 
State Gazette No. 35 of 3 May 2011, as stipulated in Article 2 the ERSA, are the promotion, consumption and use of energy, produced by variou s renewable sources, as well as transparency 
of the support schemes of all stakeholders involved  in the process. The ERSA limits the role of the 
state governance to several actions like policy and decision making, approval of bi-lateral or 
plurilateral agreements and statistical transfer s of energy, produced by renewable sources, 
adoption of national support schemes and Nati onal RE Action Plan, regulation of permit, 
certification and licensing procedures etc. Addition al information on the National Energy Efficiency 
Action Plan may be found on the following address:  
https://ec.europa.eu/energy/sites/ener/ files/documents/NEEAPBulgaria_en.pdf 
 
Bulgaria would like to confirm that the Energy Strategy till 2020, as adop ted by decision of the 
National Parliament in 2011, is a basic framework of the national energy policy. In this respect, it 
should be underlined, that only priority areas of development of the energy sector, and no 
concrete measures or support to the renewables , are presented in the Energy Strategy of the 
Republic of Bulgaria. 
 
Question 2  
Hungary 
 
Please, explain why Act LXXXVI of 2007 on Elec tric Energy published on 2 July 2007 and 
providing for certain renewable energy support schemes was not notified in 
G/SCM/N/253/EU/Add.12 and G/SCM/N/284/EU/Add.13 or provide information 
required under Article 25 of the SCM Agreement for this measure.  
Reply: 
 
Hungary has not notified the provisions of Act LXXXVI of 2007 on Electricity providing for 
renewable energy support schemes due to the fact th at such schemes fall under para b) of Art. 2.1 
of the Agreement on Subsidies and Countervailing Measures, and therefore are not considered as specific subsidies.   
Question 3 
 United Kingdom 
 G/SCM/N/253/EU/Add.27 does not contain any information concerning implementation of the renewable energy support measures fore seen by the "National Infrastructure Plan 
– 2013" of December 2013, including the following: 
  subsidies through the mechanism of "Str ike Price" within the Contracts for 
Difference; G/SCM/Q2/EU/51 
 
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   investment of £5 million during 2014-2015 in a large scale electric vehicle 
readiness programme for public sector fleets; 
 support in the form of special tariffs on renewable heat. 
Please, inform whether such mechanisms were eventually implemented and provide 
information required under Article 25 of the SCM Agreement for each of the 
implemented measures or explain why they should not be notified.  
Reply: 
 
SUBSIDIES THROUGH THE MECH ANISM OF "STRIKE PRICE"  WITHIN THE CONTRACTS 
FOR DIFFERENCE SCHEME 
The UK did not notify this scheme in its response  to the 2013 exercise because the UK had not at 
that time introduced the Contracts for Differe nce (CFD) Scheme and no payments under this 
scheme had been made. For the same reason, the UK did not notify CFDs in its response to 
the 2015 exercise. It is anticipated that CFD payments will commence for the first time 
during 2016. Depending on whether we conclude that these payments constitute a specific notifiable subsidy, the UK will notify them at the relevant time.  
 
LARGE SCALE ELECTRIC VEHICLE READINESS PROGRAMME FOR PUBLIC SECTOR FLEETS  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 
OLEV ULEV Readiness Project (Ultra Low Emission Vehicles)  
2. Period covered by the notification 
 
2014-2017 
 
3. Policy objective and/or purpose of the subsidy 
 Large scale electric vehicle readiness programme for public sector fleets. The programme aims to 
promote the adoption of ultra-low emission vehicles, demonstrating clear leadership by the public 
sector to encourage future wide spread acceptance. The scheme does not constitute State aid, the funding is supporting public sector fleets with trial costs to implement ULEV's in to their fleets. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 The legal bases for providing money to support publ ic sector fleets in England, Wales and Scotland 
are the Science and Technology Act 1965 and the Local Government Act 2003.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
Grant. 
 
6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined) 
 Public sector government departments and wider public sector organisations are the beneficiaries of the grant funding of the OL EV ULEV Readiness Project. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subs idy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
2014-2017: £5,000,000 
 G/SCM/Q2/EU/51 
 
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  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement 
 
The programme has been running since 2014 and will continue until its conclusion in 2017. 
 
9. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to th e judgement of the notifying Member. To the extent 
possible, relevant and/or determinable, however, it is desirable that such information include 
statistics of production, consumption, imports and exports of the subsidized product(s) or 
sector(s): 
 
n/a 
 SUPPORT IN THE FORM OF SPECIAL TARIFFS ON RENEWABLE HEAT – THE UK'S 
RENEWABLE HEAT INCENTIVE (RHI) 
For the 2013 return, the UK took the view that  the RHI scheme did not constitute a subsidy on 
goods. Following subsequent analysis in the light of Russia's questions, the UK now considers that 
one element of the RHI may constitute a subsidy,  to UK producers of bio-methane, therefore 
please find further details:  As stated in the UK's National Infrastructure Plan 2013 (para 3.87) the non-domestic RHI scheme 
was launched in the UK on the 28 November 2011. The scheme had been notified to the European 
Commission on 21 December 2010 and the Commission's decision not to raise objections to the scheme was made on 28 September 2011. Amendmen ts to improve the non-domestic RHI scheme 
came into force on 28 May 2014 after having been notified to the Commission on 
23 October 2013; the Commission's decision not to raise objections to these amendments to the scheme was made on 19 December 2013. As referred to in para 3.88, improvements included: 
 
 Support for renewable Combined Heat & Power (CHP), biomass boilers >1MW, deep 
geothermal, GSHP, solar-thermal and biogas combustion was increased.  
 The introduction of support for air-to-water heat pumps and commercial and industrial 
energy from waste. 
 Amending scheme rules around CHP to make the scheme more flexible, allowing participants 
to deduct the proportion of heat which is used as part of the AD process. It was also made 
easier for participants to use a mixture of fossil fuel and renewable combustion units for 
CHP. 
The domestic RHI scheme opened to applications on 9 April 2014. The scheme is available to 
homeowners, private and social landlords and people who build their own homes. The domestic 
RHI supports to air to water heat pumps, biomass only boilers and biomass pellet stoves with back boilers, ground and water source heat pumps, solar water heating for domestic hot water using evacuated tube and flat plate solar thermal panels. 
 
Question 4  
Germany 
 
Please, explain why Renewable Energy Act (published on 25 October 2008) providing for 
various support schemes of the renewabl e energy sector was not notified in 
G/SCM/N/253/EU/Add.10 and G/SCM/N/284/EU/Add.11 or provide the information required under Article 25 of the SCM Agreement for this measure.  
Reply: 
 
The Renewable Energy Sources Act (Erneuerba re-Energien-Gesetz – EEG 2009) organises the 
support to the production of electricity from renewable energy sources solely among private 
entities. This kind of price regulation is not a subsidy within the meaning of the WTO rules, as no public authorities are involved in the payments and no state resources are used. Thus, the G/SCM/Q2/EU/51 
 
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  subsidy agreement is not applicable to the EEG an d was, in the view of Germany, not subject to 
the notification.  Question 7 
 
Cyprus 
 
G/SCM/N/253/EU/Add.4 do not contain any in formation concerning implementation of 
the measures foreseen by the following documents:   Renewable Energy Industry Roadmap for Cyprus; of March 2010; 
 National Renewable Energy Ac tion Plan; of June 2010; 
In particular, according to these documents the following measures should have been 
applied: 
 
 investment loans for construction of wind farms; 
 feed-in tariffs; 
 subsidies for purchase of energy efficient vehicles; 
 subsidies for costs of construction of plants producing biofuels for transport 
purposes. 
Please, inform whether such mechanisms were eventually implemented and provide 
information required under Article 25 of the SCM Agreement for each of the 
implemented measures or explain why they should not be notified.  
Reply: 
 
SUPPORT SCHEME FOR THE PROMOTION OF RENEWABLE ENERGY SOURCES AND 
ENERGY CONSERVATION.  
1. Title of subsidy 
 
A scheme for the promotion of Renewable Ener gy Sources (RES) and Energy Conservation. 
 
2. Period covered by notification 
 
2011 – 2013. 
 3. Policy objectives 
 To provide incentives to companies or individuals to invest in RES or in Energy Conservation Technologies.  
4. Authority of subsidy 
 
Renewable Energy Sources and Energy Conservation Fund (the Fund) & Ministry of Energy 
Commerce, Industry and Tourism - Annually approved by the Council of Ministers through the 
Budget of the Fund.   
5. Form of subsidy 
 
There have been issued various form of subsidies. For electricity generation from RES, the Scheme provided a constant Feed-in Tariff for a 20-year period. For investments in RES for heating and 
cooling of buildings, and for investments in en ergy conservation, the scheme provided grants 
between 30-55% (depending on the technology).  
6. To whom and how the subsidy is paid 
 
To natural persons, non-profit organizations and to enterprises. 
 G/SCM/Q2/EU/51 
 
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  7. Amount of subsidy 
 
Total payment in: 2011: € 12.198.997.  
2012: € 8.522.220 
2013: € 13.430.654  
8. Duration of subsidy 
 
The scheme was valid up to 31 December 2013.  
9. The trade effects of the subsidy 
 
No effects on international trade. 
 
Question 8  
Malta 
 
Please, explain why the following measures re lating to support of the renewable energy 
sector were not notified in G/SCM/N/253/EU/Add.18 and G/SCM/N/284/EU/Add.19 or 
provide the information required under Arti cle 25 of the SCM Agreement for each of 
these measures:  
 Energy Efficiency and Cogeneration Re gulations, Legal Notice 196 of 2014;  
 Subsidiary legislation 423.19, Promotio n of Energy from Renewable Sources 
Regulations; Legal Notice 538 of 2010 (using  green certificates and direct price 
support schemes including feed-in tariffs and premium payments); 
 Subsidiary legislation 423.46,  Feed-In Tariffs Scheme (Electricity Generated from 
Solar Photovoltaic Installations) Regula tions; Legal Notice 253 of 2013 (feed-in 
tariffs).  
Reply: 
 
With reference to the renewable support schemes se t up through the legislation identified in the 
request from Russia, Malta views that these subsidies are not reportable under the WTO 
Agreement on Subsidies and Countervailing Measures.  
More specifically Malta would like to inform the Commission that all the subsidies granted and 
mentioned under these legal measures are not classified as "specific subsidies" under Article 2 of the WTO Agreement on Subsidies and Countervailing Measures since they do not target a specific enterprise or industry or group of enterprises or in dustries category, but are open to all as long as 
the objective eligibility criteria set out in the legislation have been satisfied. 
 Question 9 
 
Latvia 
 
Please, explain why Subsidized Electricity Ta x Law of 6 November 2013, which relates to 
support of the renewable energy sector was not notified in G/SCM/N/253/EU/Add.15 and G/SCM/N/284/EU/Add.16 or provide the information required under Article 25 of the SCM Agreement for this measure. 
 
Reply: 
 
SUPPORT TO ELECTRICITY PRODUCTION 
1. Period covered by the notification 
 
2013 and 2014. 
 G/SCM/Q2/EU/51 
 
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  2. Policy objective/to whom the subsidy is provided 
 
Increase of renewable energy production, energy  security and environmental protection climate 
change. 
 
3. Background and authority for the subsidy 
 
Several Legal Acts form the legal basis: The Electricity Market Law; Subsidised Electricity Tax Law; 
Regulations of the Cabinet of Ministers of 10 March 2009 No 221 "Regarding Electricity Production and Price Determination upon Production of Electricity in Cogeneration"; Regulations of the Cabinet of Ministers of 16 March 2010 No. 262 "Regarding the Production of Electricity Using Renewable 
Energy Sources and the Procedures for the Determination of the Price". 
 Authority for the subsidy: the Ministry of Economics. 
 
4. Form of the subsidy 
 
Feed-in tariffs, capacity payments, and tariff measures (subsidised electricity tax) limiting state 
support.   5. The annual amount of the subsidy 
 The overall support as a result of respective measures amounted EUR 211,2 million in 2013 and EUR 215,3 million in 2014. 
 
6. Duration of the subsidy 
 
Rights to produce and sell electricity within the framework of mandatory purchase or guaranteed 
payments is limited to a maximum of 15 years. The current system of mandatory purchase and 
guaranteed payments is in place until 2032 for electricity production in cogeneration and until 2037 for electricity production from renewable energy sources. 
 
However, since 26 May 2011 no new rights are conferred to sell electricity produced from renewable energy sources within the framework of mandatory purchase or guaranteed payments. 
Similarly, since 10 September 2012 no new rights are conferred to sell electricity produced in 
cogeneration within the framework of mandatory purchase or guaranteed payments.  
Application of the subsidised electricity tax will cease on 31 December 2017. 
 7. Statistical data permitting an assessment of the trade effects of the subsidy 
 
N/A 
 Question 13 
 
Luxembourg 
 
Please, explain why the Order of the Gran d Duke of 12 December 2012 stipulating 
financial support for installation of solar ph otoelectric facilities was not notified in 
G/SCM/N/253/EU/Add.17 or provide the information required under Article 25 of the SCM Agreement for this measure. 
 
Reply: 
 
The financial support for installation of photoelectric facilities (Règlement grand-ducal du 
12 décembre 2012) was not mentioned in the Luxembourg notification as it is not a specific subsidy and as such not subject to the notification obligation foreseen under Article 25 of the SCM 
Agreement. 
 There are objective criteria and conditions governing the eligibility. The amount of the subsidy and the eligibility are fixed, no discretionary decision is required. Those criteria and conditions are G/SCM/Q2/EU/51 
 
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  strictly adhered to and are detailed in regulation by the mentioned règlement grand-ducal. It 
follows that the scheme is considered non-specif ic and therefore not subject to notification. 
 Question 14 
 
Slovenia 
 
Please, explain why Decree on Support of El ectricity Produced from Renewable Energy 
Sources (published in the Official Gazette of the Republic of Slovenia Nos. 37/09, 53/09, 
68/09, 76/09, 17/10, 94/10, 43/11, 105/11, 43/12, 90/12 and 17/14) and establishing feed-in tariffs for rene wable energy was not notified in 
G/SCM/N/253/EU/Add.24 or provide the information required under Article 25 of the 
SCM Agreement for this measure.  
Reply: 
 
On reviewing question 14 contained in G/SCM/Q2/EU/47 and question 5 contained in 
G/SCM/Q2/EU/44 it appears that both questions re fer to the same regulation, only the English 
translation in the questions differ. Therefore the reply given to Q5 of G/SCM/Q2/EU/44 applies.   Question 15 
 
Czech Republic 
 
Please, explain why Act No. 165 of 31 Janua ry 2012 On Promoted Energy Sources 
relating to support of the renewable energy sector was not notified in 
G/SCM/N/253/EU/Add.5 and G/SCM/N/284/EU/Add.6 or provide the information 
required under Article 25 of the SCM Agreement for this measure. 
 Reply: 
 
The Czech competent authority took into account the given criteria and guidelines a came to 
conclusion that the respective subsidies do not fall within the scope of the notification obligations of the ASCM. A similar approach was taken in case of the previous notification when the above 
mentioned Act has already been in force. 
 
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