WRITTEN QUESTION E-2648/02

by Sérgio Marques (PPE-DE) to the Commission

(20 September 2002)

Subject: The energy section of the Poseima programme

Between 1991 and 1993 the Portuguese autonomous regions benefited under the energy section of the Poseima programme from aid designed to compensate for the additional costs of transporting petroleum products by sea between the continent and the main storage depots in the archipelagos of the Azores and Madeira, as well as between them and the secondary depots situated on other islands in both archipelagos.

At the end of this period the Commission was sent the annual reports and other additional information enabling it to evaluate the measure and review the situation, with a view to deciding whether to extend it. However, the Commission has still not carried out this evaluation.

Despite having taken note of the proposals made by the two Portuguese regions to renew the energy measure under Poseima, submitted by Portugal in 2000 and 2001, and having recognised, in the Report on the measures designed to comply with Article 299(2) of the EC Treaty, both regions' heavy dependence on oil supplies and the fact that, as regards the energy section of Poseima, the funding was utilised in accordance with the proposed objectives, this issue has been neglected for a long time, since the Commission systematically claims it is difficult to find funding for it.

Can the Commission say:

1. when it intends to fulfil its legal obligation to evaluate the aid granted to the energy sector in the Portuguese autonomous regions under the energy section of the Poseima programme between 1991 and 1993;

2. whether the disadvantages of the energy sector in Madeira and the Azores, well-known to the Commission and recognised by the European Parliament as early as 1994, make it necessary to maintain specific Community aid to the sector, more precisely along the lines which were recently proposed to the Commission and merited its support, and how and when the Commission intends to create a separate budget heading, in addition to the structural funds, to finance the energy section of the Poseima programme;

3. when it will carry out its intention to introduce a specific arrangement for the outermost regions to enable them to benefit fully from the funding envisaged under the various energy progammes included in Community energy and RTD policies?

Answer given by Mrs de Palacio on behalf of the Commission

(29 October 2002)

1. The Commission evaluated the energy section of the Poseima programme at the end of its implementation period (1991-1993). The assessment report sent by the Commission's Secretariat-General to the Interdepartmental Working Party on outermost regions in 1997 concluded that the Poseima energy funds had been used in accordance with the provisions of the Poseima Regulation.

2. It was not possible to pursue the Poseima energy initiative beyond 1994 owing to a lack of separate funding (the budgetary authority removed the Poseima budget headings). This still applies today and also explains the fact that aid intended to offset additional transport costs cannot be covered from the Structural Funds. Accordingly, such compensation can only be provided by means of specific aid granted at national level and duly notified to the Commission, or by another type of Community intervention to be discussed and identified. The Commission could examine this issue. In fact, the Commission has indicated to the Portuguese authorities on several occasions that it seems possible to finance certain investment support measures for energy saving and renewable energy through the Structural Funds, especially Objective 1, and has encouraged them to explore that avenue thoroughly. This possibility of Structural Fund co-financing is also mentioned in the Commission's report on measures intended to implement Article 299(2).(1) It should also be noted that since the amendment of Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds,(2) the Community contribution can in exceptional cases be raised to 85 % of eligible costs for the outermost regions.

3. Most of the Community rules currently in force allow account to be taken of the needs of the outermost regions (e.g. state aid, public service obligations). Moreover, the Commission has recently put forward several proposals recognising the special nature of these regions. For instance, in December 2001, as part of the review of the Community guidelines for the trans-European energy network (TEN)(3) (still under discussion in Parliament and the Council), it proposed including the interconnection of the outlying and outermost regions. The Commission's proposal identifies two projects of common interest in this regard: the development and connection of the electricity grids in these regions, and the introduction of natural gas and creation of gas grids. This inclusion of the outermost regions in the TEN-Energy guidelines clears the way for financial support from the TEN budget and loans from the European Investment Bank (EIB). Furthermore, though the SAVE and Altener programmes have until now made no specific reference to the outermost regions, the Commission has proposed that the forthcoming Intelligent energy for Europe programme(4) encourage these regions to participate through specific key actions. The proposal for the Intelligent energy for Europe programme is currently being discussed in Parliament and the Council.

(1) OJ C 181 E, 30.7.2002.

(2) OJ L 161, 26.6.1999.

(3) COM(2001) 775 final.

(4) OJ C 203 E, 27.8.2002.