WRITTEN QUESTION E-1715/97 by Hiltrud Breyer (V) to the Commission (23 May 1997)

Subject: Electricity Grid Feed Act

The letter of 26 October 1996 from Commissioner Van Miert to Germany's Federal Minister for Economic Affairs, Rexrodt, refers to adverse effects of the Electricity Grid Feed Act on intra-Community trade in electricity. However, within the EU electricity is traded only by vertically integrated undertakings such as PreussenElektra, and not by distributors such as Schleswag, EWE, ÜNH, etc. However, under the Electricity Grid Feed Act only the latter are required to take delivery of electricity generated using wind power and to pay a higher price for it than for other electricity. PreussenElektra, which is an independent producer and transmission-grid operator, has not so far been required to pay for a single kilowatt-hour of electricity generated from wind power. The only way in which the vertically integrated undertaking PreussenElektra has been affected by the feeding into the distribution grid of electricity from wind power has been in the form of reduced sales of electricity to distribution companies.

1. In the light of these facts, what is the Energy Commissioner's view of the impact of the Electricity Grid Feed Act on intra-Community trade in electricity?

2. How should this impact be assessed in the light of the entry into force of the Directive laying down common rules for the internal market in electricity, particularly Article 14(3), pursuant to which energy supply enterprises are required to separate the generation, transmission and distribution of electricity?

3. What is the Commission's view of the fact that PreussenElektra seeks to assist its subsidiaries or associated undertakings, such as Schleswag or Sydkraft, bearing in mind Article 7(5) of the Directive laying down common rules for the internal market in electricity, which prohibits discrimination in the following terms: 'The system operator shall not discriminate between system users or classes of system users, particularly in favour of its subsidiaries or shareholders.'

4. Does the Commission agree that Articles 8(3) and 11(3) of the Directive laying down common rules for the internal market in electricity expressly provide for the possibility of assigning priority to renewable energy, including therefore the introduction of minimum payments for electricity generated from renewable energy sources, such as those guaranteed by the Electricity Grid Feed Act in Germany?

Answer given by Mr Papoutsis on behalf of the Commission (26 June 1997)

The German Stromeinspeisegesetz (Electricity Grid Feed Act) obliges electricity distribution companies to purchase, at a guaranteed minimum price, electricity produced from renewable energy sources. The Commission was notified of the Act and approved it in 1990 in accordance with Article 92 of the EC Treaty. However, the Commission finds that support is being given to renewable energies in market conditions and at prices which have since changed.

1. In its Resolution of 27 May 1997 on a strategy for renewable sources for energy, adopted following the Commission's Green Paper ((Doc. COM(96) 576. )), the Council notes that within the framework of liberalisation of energy markets an active governmental policy on the level of Member States and - taking into account the principle of subsidiarity - on Community level is necessary to improve the competitiveness of renewable energies. For its part, the Commission will shortly be presenting a White Paper and an action plan on renewable energies, in which it will examine whether an approach comparable to that of the Stromeinspeisegesetz would be an appropriate instrument.

2. and 3. Directive 96/92/EC on the internal market in electricity ((OJ L 27, 30.1.1997. )) entered into force on 19 February 1997. Member States have two years in which to transpose it into national law. The Commission is therefore not in a position at present to assess Preussen Elektra's behaviour in respect of Articles 7(5) and 14(3) thereof.

4. Articles 8(3) and 11(3) of the Directive do indeed allow renewable energies to be prioritised in the dispatching of generating installations, but the Directive gives no indication as to their financing, which is to be determined at national level as part of the transposition mentioned at 2. and 3. above, without prejudice to the Treaty's provisions on State aids.