WRITTEN QUESTION E-0175/97 by Ludivina García Arias (PSE) to the Commission (3 February 1997)

Subject: Competition policy and the funding of nuclear energy in Europe

In reply to a question (H-0729/95) ((Debates of the European Parliament No 4-470 (November 1995). )) on public aid in the energy sector, Commissioner Christos Papoutsis said that 'the Euratom Treaty does not provide for the establishment of any special rules on state support except in the sector covered by Chapter VI, namely the supply of minerals, raw materials and special fissionable materials as defined in Article 197. Exactly the same rationale applies to state support for research in the context of Annex I of the Euratom Treaty. State aid for the nuclear industry will be governed by the rules of the EC Treaty, except in the areas mentioned earlier, which are covered by the Euratom Treaty'.

In its working document of 5 July 1990 on security of supply in the internal energy market (SEC(90)1248) the Commission notes that, in the absence of absolute transparency in nuclear energy production costs, it was difficult to determine whether or not all the costs had actually been taken into account when the prices were calculated, particularly as regards research and decommissioning costs.

In view of this legal void and the lack of transparency in the nuclear sector, what action (and over what timescale) is the Commission intending to take in order to prevent the unfair competition which gives the nuclear sector an advantage over other energy sources, with a view to developing the internal market in energy?

Answer given by Mr Papoutsis on behalf of the Commission (4 April 1997)

The Commission clearly states in its Illustrative Nuclear Programme for the Community (PINC) under Article 40 of the Euratom Treaty ((Doc. COM(96) 339. )) that:

'Developments towards the liberalization of the Community internal electricity market will mean that nuclear energy will have to compete in the same framework and under the same conditions as all other energy sources. Full implementation of the internal market and a rigorous application of the relevant state aid and competition rules implies a level playing field for all energy sources.'

This being the principle, the Commission has several times had to examine the basis of claims that the nuclear sector was receiving support which created unfair competition. It never found the facts to be substantiated.

In the context of research and development, the granting of such support takes place within a Community framework and is scrutinized by the Commission.

Producers are required by the national public authorities to build up adequate financial reserves for decommissioning. These cannot be regarded as support.

The Commission clearly set out the principle of the level playing field for all energy sources in the Illustrative Nuclear Programme for the Community. It therefore proposes to continue to check for compliance with this principle, on a case-by-case basis, whenever a problem is brought to its attention. It did this in 1992/1993 ((See the answer given to Written Question No 1412/93 from Sir James Scott-Hopkins - OJ C 327, 3.12. 1993. )) when it carried out investigations which showed that, in the case considered, there was no proof of the existence of support incompatible with Community law in the nuclear sector.