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(2004/C 65 E/202)

WRITTEN QUESTION P-2648/03

by Dirk Sterckx (ELDR) to the Commission

(28 August 2003)

Subject:   Lower natural gas prices for glasshouse growers

Until 2002, on the basis of a gentlemen's agreement, glasshouse growers in Belgium were granted lower natural gas prices, a measure introduced with a view to persuading the very energy-intensive glasshouse crops sector to switch to gas, a more environmentally friendly energy source. Roughly one-fifth of firms in Belgium's glasshouse crops sector have since switched to natural gas, and are now suddenly facing very high bills. The lower price was reportedly withdrawn in order to bring Belgium into line with the rules governing the internal market in natural gas. One of the objectives of the Flemish Government, as set out in its action plan entitled ‘Towards a more sustainable glasshouse crops sector in Flanders’, is to take steps to ensure that within 10 years 75 % of glasshouse growers in Flanders use natural gas.

Answer given by Mrs de Palacio on behalf of the Commission

(29 September 2003)

The European Directives introducing competition to the European natural gas sector enable eligible customers to freely choose their suppliers by opening up the networks to third parties and unbundling of vertically integrated companies. The natural gas prices paid by the consumer do not fall under the scope of the Directives, which stipulates that transportation tariffs for natural gas must be non-discriminatory and transparent. The regulatory authorities of Member States will be responsible for effective competition and the efficient functioning of the market. As a consequence, consumers of natural gas should also benefit from competition by lower consumer prices.

From the Commission's point of view, natural gas prices to consumers are dependent on the market. However, according to Article 3 of Directive 2003/55/EC of the Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC (1), a Member State may consider it appropriate to impose on undertakings operating in the gas sector, in the general economic interest, public service obligations which may relate, inter-alia, to the price of natural gas supplies. Such obligations, however, must be clearly defined, transparent, non-discriminatory and verifiable.

The Commission does not a priori exclude that the promotion of environmentally friendly energy sources might justify the granting of price reductions. Cases in which advantages are given to enterprises have to be notified to and examined by the Commission under Articles 87-88 of the EC Treaty.

In that respect the Community guidelines on State aid for environmental protection (2), and the Community Guidelines for State aid in the agricultural sector, might be relevant (3).

Both Directive 98/30/EC of the Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas (4) and Directive 2003/55/EC do not deal with natural gas prices paid by the consumers of natural gas. Natural gas prices are considered a matter of the market and are not subject to regulation, unless regulating or controlling gas prices to natural gas consumers is thought to be a matter of consumer protection. Directive 2003/55/EC allows imposing public service obligations to natural gas undertakings, if these public service obligations relate to security, including security of supply, regularity, quality and price of supplies, and environmental protection, including energy efficiency and climate protection and if the public service obligations are clearly defined, transparent, non-discriminatory and verifiable.

The Commission is currently examining tax reductions for glasshouse growers in Germany and Italy.

It should also be noted that in the Netherlands a preferential pricing system for natural gas to the glasshouse horticulture sector applied till the end of 1998 (State aid Ν 464/94). The relevant agreement was renewed covering the period 1998-2002. In this case the Commission concluded that the tariff as notified by the Dutch authorities did not give an economic advantage to glasshouse horticulture vis-à-vis other sectors of the Dutch economy which could obtain the same tariff, if they used the same quantities of gas. Therefore, it was concluded that this scheme did not constitute aid within the meaning of Article 87 of the EC Treaty.

Finally, the Commission notes that the future energy tax Directive (as set in the Council political compromise of March 2003, in consultation in the Parliament by now) provides that Member States may apply a level of taxation down to zero to energy products and electricity used for agricultural, horticultural or piscicultural works, and in forestry.

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(1)OJ L 176, 15.7.2003.

(2)OJ C 37, 3.2.2001.

(3)OJ C 232, 12.8.2000.

(4)OJ L 204, 21.7.1998.

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