# CE2004084EN.01072401.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/724 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/724

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(2004/C 84 E/0813)

WRITTEN QUESTION E-1457/03

by Hiltrud Breyer (Verts/ALE) to the Commission

(29 April 2003)

Subject:   Euratom/Distortions in the electricity market

Subject:

| 1. | The Common Position adopted by the Council on the revised Electricity Market Directive states that the lack of a level playing field in generation is one of the shortcomings of the EU's electricity market. The Euratom Loan Facility can only be used for nuclear projects. Why is this not perceived as a market distortion? |
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1.

The Common Position adopted by the Council on the revised Electricity Market Directive states that the lack of a level playing field in generation is one of the shortcomings of the EU's electricity market. The Euratom Loan Facility can only be used for nuclear projects. Why is this not perceived as a market distortion?

| 2. | Are there any circumstances in which loans can be granted for non-nuclear projects? |
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2.

Are there any circumstances in which loans can be granted for non-nuclear projects?

| 3. | Do the Euratom loans, or the grants awarded by either PHARE or TACIS, have to comply with the public procurement principles, as described in Directives 1992/50/EWG (1), 1993/36/EWG (2) and 1993/37/EWG (3)? |
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3.

Do the Euratom loans, or the grants awarded by either PHARE or TACIS, have to comply with the public procurement principles, as described in Directives 1992/50/EWG (1), 1993/36/EWG (2) and 1993/37/EWG (3)?

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Answer given by Mr Solbes Mira on behalf of the Commission

(20 June 2003)

(20 June 2003)

| 1. | The fact that this is a dedicated facility does not mean that it distorts the market, since other facilities are available for ‘competitors’. For Member States this is clearly the case, through European Investment Bank (EIB) activities and those of commercial banks. For third countries there are also the EIB and the European Bank for Reconstruction and Development (EBRD), for example, which finance other energy sources. It is to be noted that Euratom loans are given at the market rates available to the Commission. |
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1.

The fact that this is a dedicated facility does not mean that it distorts the market, since other facilities are available for ‘competitors’. For Member States this is clearly the case, through European Investment Bank (EIB) activities and those of commercial banks. For third countries there are also the EIB and the European Bank for Reconstruction and Development (EBRD), for example, which finance other energy sources. It is to be noted that Euratom loans are given at the market rates available to the Commission.

| 2. | As the legal basis for the facility is the Euratom Treaty, Euratom loans can only be granted to nuclear projects. |
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2.

As the legal basis for the facility is the Euratom Treaty, Euratom loans can only be granted to nuclear projects.

| 3. | Within the Member States, projects for which loans are granted are governed by the aforementioned Directives to the extent that they are carried out by awarding authorities to which these Directives apply. Other operators may fall under Council Directive 93/38/EEC of 14 June 1993 coordinating the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors. In third countries, the respective domestic law applies. All grants provided by PHARE and TACIS in any third country have to comply with the public procurement principles described in the applicable Community Directives. However, the detailed rules laid down in the Directives only apply in Member States. |
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3.

Within the Member States, projects for which loans are granted are governed by the aforementioned Directives to the extent that they are carried out by awarding authorities to which these Directives apply. Other operators may fall under Council Directive 93/38/EEC of 14 June 1993 coordinating the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors. In third countries, the respective domestic law applies. All grants provided by PHARE and TACIS in any third country have to comply with the public procurement principles described in the applicable Community Directives. However, the detailed rules laid down in the Directives only apply in Member States.

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(1)  OJ L 209, 24.7.1992, p. 1.

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(2)  OJ L 199, 9.8.1993, p. 1.

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(3)  OJ L 199, 9.8.1993, p. 54.

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