WRITTEN QUESTION E-0167/00 by Rosa Díez González (PSE), Fernando Pérez Royo (PSE) and Luis Berenguer Fuster (PSE) to the Commission. Competition transition costs (CTC) and market variables for the Spanish electricity sector.
Date: 2000-01-31
Institutions: European Parliament, Provisional data
Subjects: Spain, consumer protection, control of State aid, electrical industry, liberalisation of the market

C 330 E/96

Official Journal of the European Communities

EN

21.11.2000

The common position lays down criteria following which Member States may extend the implementation
period, and in certain cases set lower environmental objectives. These are, among others, unforeseen and
extraordinary droughts, and flooding or regeneration of groundwater, which often for natural reasons will
exceed the period laid down by the proposal. The first reading of Parliament and the recently adopted
amendments of the environment committee suggest a strengthening of the criteria.

The Commission(cid:146)s evaluation of the consequences of implementation were presented in the explanatory
memorandum to the original proposal. Council and Parliament have not commented on this evaluation in
their respective readings of the proposal.

(1) OJ C 343, 30.11.1999.
(2) OJ C 184, 17.6.1997.
(3) COM(2000) 1 final.
(4) OJ C 342 E, 30.11.1999.

(2000/C 330 E/105)

WRITTEN QUESTION E-0165/00

by Rosa D(cid:237)ez GonzÆlez (PSE), Fernando PØrez Royo (PSE)
and Luis Berenguer Fuster (PSE) to the Commission

(31 January 2000)

Subject: Monitoring of state aid to the Spanish electricity sector

With reference to the state aid for competition transition costs given to the Spanish electricity sector, and
bearing in mind that Commissioner Monti has recognised that the sixth transitional provision of Law
54/97 on the Spanish electricity sector is a state aid which was granted without prior notification of the
Commission, what view will the Commission take of the amounts already received by Spanish electricity
companies when it comes to take a decision on this matter pursuant to Article 87(3)(c) of the Treaty?

Answer given by Mr Monti on behalf of the Commission

(9 March 2000)

In accordance with the Court(cid:146)s case law, the unlawful nature of a state aid measure, i.e. the fact that the aid
was granted without prior notification to the Commission, does not prejudge its compatibility with the
common market. The amounts already received will, therefore, be examined on the basis of the EC Treaty
articles to determine whether they are compatible with the common market and whether they will have to
be repaid.

(2000/C 330 E/106)

WRITTEN QUESTION E-0167/00

by Rosa D(cid:237)ez GonzÆlez (PSE), Fernando PØrez Royo (PSE)
and Luis Berenguer Fuster (PSE) to the Commission

(31 January 2000)

Subject: Competition transition costs (CTC) and market variables for the Spanish electricity sector

Bearing in mind the funding system introduced by the sixth transitional provision of Law 54/97 on the
Spanish electricity sector enabling electricity companies to receive aid to cover competition transition
costs, has the Commission urged the Spanish government to amend this provision and link the granting of
CTC to market variables (demand, price, interest rates, etc.), as the Commission advocated in its analysis
methodology for state aid linked to CTC?

21.11.2000

EN

Official Journal of the European Communities

C 330 E/97

Answer given by Mr Monti on behalf of the Commission

(27 March 2000)

The Spanish authorities promised the Commission that they would not authorise electricity companies to
transfer to third parties the right to receive aid to cover the (cid:145)costs of transition to competition(cid:146) (CTC) as
referred to in the sixth transitional provision of Act No 54/1997 before the Commission adopted a final
decision on the matter. So far no such transfer has been authorised by the Spanish authorities. Even if any
transfer had taken place, mechanisms exist in Spanish law to adjust the amounts of CTC to genuine past
costs arising from market variables. The Commission will adopt its decision on the CTC in accordance
with the principles laid down in its draft methodology, and in particular it will make sure that
arrangements for the payment of aid take account of future trends in competition. Such trends will have
to be measurable by quantifiable factors i.e. prices, market shares and other relevant factors.

(2000/C 330 E/107)

WRITTEN QUESTION E-0173/00

by Salvador Garriga Polledo (PPE-DE) to the Commission

Subject: EU cooperation to help Mexico pay off the bank rescue debt

(31 January 2000)

The Mexican authorities will shortly be investing some 840 million dollars in bonds to begin covering the
liabilities from the bank rescue programme. The aim is to meet the commitments given to banking
institutions under the bank bailout scheme.

After the 1995 financial crisis, the Mexican Government pumped funds into banks to prevent a collapse of
the financial system, mainly by purchasing overdue loan portfolios in exchange for debt bonds.

What part has the Commission played in this process, by which Mexico is seeking to pay off its bank
rescue debt, and what other Community measures have been devised to help one of the EU(cid:146)s most
important partners to overcome once and for all the long-standing financial crisis going back to 1995?

Answer given by Mr Solbes Mira on behalf of the Commission

(2 March 2000)

The Community did not contribute to the package of emergency financial assistance put together by the
international financial community in 1995 in response to the financial crisis experienced by Mexico at the
end of 1994. This package comprised mainly contributions from the United States, the International
monetary fund (IMF) and Canada, although other international financial institutions (the World Bank and
the Inter-American Development Bank, in particular) also reinforced their lending operations for Mexico in
the aftermath of the crisis.

Since 1995, the Mexican economy has made substantial progress in addressing the macroeconomic,
financial and structural problems that contributed to the 1995 crisis and economic growth has resumed.
increase domestic saving, rebuild its foreign
Mexico has also managed to reduce inflation markedly,
exchange reserves, and maintain the budget deficit at moderate levels. As for the banking system, although
it remains fragile, its position has been considerably strengthened over the last five years. Regulation and
supervision arrangements have been enhanced and various support programmes for banks and debtors
have been implemented.

In this context, there does not seem to be an obvious justification for considering at this stage a further
round of financial support for Mexico from the international community. The intended issuance by the
Savings Protection Institute (IPAB) of floating rate notes to replace bank claims on the institute stemming
from the 1995 bank bail-out should strengthen the asset side of banks(cid:146) balance sheet without a significant