WRITTEN QUESTION E-3425/01

by Luis Berenguer Fuster (PSE) to the Commission

(21 December 2001)

Subject: Regasification plant in Sagunto (Valencia)

In the Region of Valencia there were two projects to build regasification plants, which were basically intended to meet the needs of the tile industry, located almost exclusively in the province of Castellón. The first was to be in Sagunto (Valencia) to be run by Unión Fenosa. The second was to be located in the port of Castellón and would be run by Iberdrola, although ASCER (Association of Tile Industries) would be involved and Endesa was negotiating its inclusion.

In response to these two projects the Secretary of State for the Economy, Mr Folgado, said that the Region of Valencia only had room for one regasification plant, a recommendation which the Generalitat of Valencia blindly followed.

In this situation, in which the competent authorities opted for a regional monopoly rather than free competition, and in view of the fact that the Unión Fenosa project was more advanced, Iberdrola chose to abandon its project and join in the Sagunto project. Endesa will probably join as well, which means that the three most important electricity companies operating on the Spanish market, which between them have cornered almost the whole market, will share the monopoly.

Regasification plants do not have any particular environmental impact and therefore do not justify the interventionist attitude of the Spanish and Valencian governments, who have opted for a single plant instead of allowing a number of competing projects.

In view of this situation, can the Commission say whether:

- it considers that the decision to allow only one regasification plant in the Region of Valencia promotes competition or constitutes an unjustified monopoly;

- it considers that the creation of a subsidiary belonging to the three main (and almost the only) electricity companies constitutes an anti-competition move;

- it considers it appropriate to take some action in this connection;

- it upholds its traditional view that firms which collectively occupy a dominant position should not set up joint subsidiaries?

Answer given by Mr Monti on behalf of the Commission

(19 February 2002)

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(1) has opened up the natural gas market in Europe. According to this directive, natural gas customers above a certain level of consumption are free to choose their supplier of natural gas.

Under these circumstances, the Commission fails to see why the creation of a new regasification plant in Sagunto would prevent eligible customers (presumably including customers from the tile industry) to source their gas needs from the supplier of their choice. Currently, there are more than 20 authorised suppliers of natural gas in Spain. Additionally, the Sagunto regasification plant is not and will not be the only plant of this kind in Spain. Indeed, Spain is the Member State where the number of regasification plants is the highest in Europe: three already are in operation and at least three others are planned.

The Honourable Member further inquires whether the creation of a subsidiary by the three largest electricity companies in Spain to build and run the regasification plant constitutes a restriction of competition and whether the Commission will take some action in this case.

Given the absence of precision as to the project at this early stage, the Commission is unable to consider whether it is appropriate to take some action in this case under the EC competition rules.

(1) OJ L 204, 21.7.1998.