WRITTEN QUESTION No. 1417/97 by Christoph KONRAD to the Commission. Distortion of competition by state subsidies for renewable energy sources, in particular wind-power generators
Date: 1997-04-23
Institutions: European Parliament, KONRAD
Subjects: EU law - national law, Germany, State aid, control of State aid, electrical energy, energy supply, renewable energy, restriction on competition, wind energy













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91997E1417

WRITTEN QUESTION No. 1417/97 by Christoph KONRAD to the Commission. Distortion of competition by state subsidies for renewable energy sources, in particular wind-power generators  


Official Journal C 373 , 09/12/1997 P. 0123 





WRITTEN QUESTION E-1417/97 by Christoph Konrad (PPE) to the Commission (23 April 1997)Subject: Distortion of competition by state subsidies for renewable energy sources, in particular wind-power generators1. Has the German Federal Government already answered the Commission's complaint in the form of a letter of 25 October 1996 on the high levels of subsidy provided for under electricity feeder-supply legislation for the operation of wind-power generators?2. If the Commission is not satisfied with the answer will it introduce more extensive measures?3. On what legal basis can the distortion of competition by this specific subsidy be reconciled with the principle of free competition?4. Is the Commission reviewing corresponding feeder-supply legislation in the other Member States of the European Union? Where findings equivalent to those recorded in the Federal Republic are established are the same complaints submitted to the governments concerned?5. Will the Commission specify a period within which this type of subsidy must be completely abolished?Answer given by Mr Van Miert on behalf of the Commission (29 May 1997)1. and 2. In reply to the Commission the German minister of economics agreed that the additional burden due to the German electricity supply regulation (SEG - Stromeinspeisungsgesetz) especially in the coastal regions must not increase unchanged and referred to a draft proposal of the Bundesrat concerning an amendment of the SEG. The German government is presently examining a limitation or reduction of the minimum price prescribed by the SEG and in that process is also taking into account the proposals of the Commission.The Commission intends to await the result of that debate before deciding on further measures. If the German parliament decides to amend the law, modifications will probably be subject to prior notification pursuant to Article 93 (3) EC Treaty to allow the Commission to assess whether the law is in accordance with the regulations on state aid. If the debate in Bonn does not lead to an amendment of the SEG, the Commission may consider whether to propose appropriate measures (Article 93 (1) EC Treaty) to the German government.3. In 1990, the Commission approved the SEG notified by Germany on the basis of Article 93 (3) EC Treaty. Since then, the situation on the market for wind energy has changed fundamentally. Several complaints have been made to the Commission by electricity companies. If the promotion of wind energy continues unchanged pursuant to the SEG,the Commission will check its compatibility under Community state aid law.4. The Commission approved a Danish law in 1996, which the Commission considers less trade distorting than the German SEG.5. The Commission does presently not intend to present a time frame for abolition of this type of subsidy, but to apply its general principles on state aid to each case individually when notifications are submitted.