WRITTEN QUESTION E-0909/01 by Luis Berenguer Fuster (PSE) to the Commission. Changes in Spanish legislation on the electricity industry.
Date: 2001-03-28
Institutions: European Parliament, Provisional data
Subjects: Spain, application of EU law, control of State aid, electrical industry, energy law, national law, restriction on competition

C 340 E/120

Official Journal of the European Communities

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4.12.2001

Since the problem is still acute, controls are still deficient and the Commission, according to its reply, has
been collecting information on the matter since 20 March 2000 and has also received specific complaints,
in the form of the complaint from the General Confederation of Greek Workers with reference number
00/4404, SAG2000 A/382828/2 and my Question No E-0014/00 (3):

1. When does the Commission intend to forward the information it has collected?

2. Why has it not opened infringement proceedings under Article 226 with the information on which

the complaints are based or which it has collected itself?

(1) OJ C 303 E, 24.10.2000, p. 178.
(2) OJ L 183, 29.6.1989, p. 1.
(3) OJ C 280 E, 3.10.2000, p. 158.

Answer given by Ms Diamantopoulou on behalf of the Commission

(18 June 2001)

The Commission would point out that an issue as complex as the adequacy of the controls and supervision
carried out by the Member States pursuant to Article 4(2) of framework Council Directive 89/391/EEC of
12 June 1989 on the introduction of measures to encourage improvements in the safety and health of
workers at work cannot be assessed without full, detailed information on the alleged dysfunction in the
system of control and supervision.

As far as the specific situation in Greece is concerned, the Commission requested further information from
the plaintiff following the complaint made by the General Confederation of Greek Workers. After receiving
this information, the Commission also sent a letter to the Greek Government requesting information on
the introduction of measures to encourage improvements in the safety and health of workers at work.
Although a reminder letter on this matter has been sent to the Greek authorities, they have not yet
provided the information requested by the Commission.

The information collected following the Honourable Member(cid:146)s Written Question E-0339/00 (1) will be sent
separately to the Honourable Member and the Secretariat of the Parliament directly.

(1) OJ C 303 E, 24.10.2000.

(2001/C 340 E/138)

WRITTEN QUESTION E-0909/01

by Luis Berenguer Fuster (PSE) to the Commission

Subject: Changes in Spanish legislation on the electricity industry

(28 March 2001)

The Spanish Royal Decree Law 2/2001 of 2 February 2001 amends the wording of the Sixth Ttransitional
Provision of the Electricity Industry Act. The object of the exercise is to enable the Spanish Government to
delay the opening of the case relating to State aids to electricity companies in the form of costs of
transition to competition (CTCs). The new wording removes the most serious flaw in the earlier rules,
which established the entitlement to receive a sum of money irrespective of the trend in costs and the
energy price. Spanish consumers had been paying the sum in question by means of a 4,5 % surcharge on
the standard electricity rate, and the electricity companies have thus received some ESP 500 billion.

By altering the rule concerned, the Government has in effect accepted the Commission view, fully shared
by Spanish consumers and the questioner, that CTCs have been regulated in such a way as to constitute, in
principle, unnotified State aids.

The change may be purely cosmetic and designed to avert the proceedings because the many remaining
dubious points in the rules are continuing to strengthen the position of the existing electricity companies,
thus making it difficult for new firms to enter the market. For example, the present wording still grants the
right to compensation, the amount of which will be determined annually by the Government without

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Official Journal of the European Communities

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regard to cost and market trends. Furthermore, the assets on which the entitlement to payment is based
have been valued under a suspect system in which the results exceed the investment outlay. In the light of
these and other matters (increase in the total amount by approximately ESP 100 billion, failure to spell out
the payment method, etc.), the Commission ought to examine the new payment system to ascertain
whether it might serve in any way to impede competition.

Does the Commission consider that the changes to the Spanish electricity legislation make it impossible to
open the case concerning State aids in the form of costs of transition to competition? Why have the
proceedings not yet been instituted?

Answer given by Mr Monti on behalf of the Commission

(11 May 2001)

The Commission has not yet decided whether initiating proceedings under Article 88(2) of the EC Treaty
(formerly Article 93) is justified in this case. It is currently studying the impact of the changes made by
Royal Decree-Law No 2/2001 of 2 February 2001. It is also considering the consequences of the Court of
Justice(cid:146)s judgment of 13 March 2001 in Case C-379/98 PreussenElektra AG v. Schlesswag AG (1).

As the Honourable Member is aware, the problem of stranded costs in the electricity sector affects several
Member States and poses complex and unusual problems as regards state aid. It is for this reason that the
Commission feels it would be wise to wait for the above judgment before initiating proceedings in this
case.

(1) Not yet published in the European Court Reports.

(2001/C 340 E/139)

WRITTEN QUESTION E-0911/01

by Piia-Noora Kauppi (PPE-DE) to the Commission

(28 March 2001)

Subject: Cooperation in the construction of the third generation network

A heated debate is now going on about the mistakes which were made in the procedure for allocating the
frequencies required for the third generation of wireless communication. However, the frequencies have
now largely been allocated, and it is time to debate how the EU can remain involved in the development of
the mobile Internet, and how we can meet the global challenges.

It is in the interest of the European consumer that it should be possible to construct the third generation
wireless networks without placing an undue strain on the cluster of industries which make up the
European telecommunications sector.

Mr Kaj-Erik Relander, managing director of the Finnish telecommunications operator Sonera, has spoken
publicly about the cost savings which could be brought about in the EU Member States if cooperation in
network construction and maintenance were to be permitted. However, Mr Relander says that cooperation
requires the approval of the licensing authorities or regulators.

How does the Commission intend to bring its influence to bear so that the investments which the third
generation requires can be made without an undue strain being placed on the European telecommuni-
cations cluster and thus on the EU(cid:146)s competitiveness?

Can the Commission put any pressure on the national authorities to take a positive attitude towards
telecommunications operators(cid:146) efforts to construct networks jointly with other licence holders?