WRITTEN QUESTION E-2567/01 by Antonios Trakatellis (PPE-DE) to the Commission. Delay in liberalising the internal market in electricity and distortion of competition in Greece.
Date: 2001-09-21
Institutions: European Parliament, Provisional data
Subjects: EC Directive, Greece, application of EU law, electrical energy, energy policy, liberalisation of the market, restriction on competition

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Official Journal of the European Communities

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18.4.2002

(2002/C 93 E/192)

WRITTEN QUESTION E-2567/01

by Antonios Trakatellis (PPE-DE) to the Commission

(21 September 2001)

Subject: Delay in liberalising the internal market in electricity and distortion of competition in Greece

leading to
There has been a considerable delay in the liberalisation of the energy market in Greece,
distortion of competition on the EU’s internal market in electricity as a result of the interventionist policy
pursued by the Greek state-owned electricity company, DEI, which has exploited its monopoly position in
Greece to obstruct the opening of the market, thereby jeopardising energy sufficiency, when in the coming
years there will be a need to increase the supply of electricity.

After being granted a two-year extension of the deadline to implement its obligations under Directive
96/92/EC (1) concerning common rules for the internal market in electricity, Greece was required, pursuant
to that Directive, to have in place by March 2001 all the laws, regulations and administrative provisions
for the liberalisation of the internal market in electricity:

1. Has the Greek legislation (Law 2773/99, Greek Government Official Gazette 286A, 22.12.1999, and
Regulation B1498, 8.12.2000) concerning the liberalisation of the internal market in electricity been
harmonised to comply with Community legislation and the provisions of the Treaties?

2,

Is Greece in breach of Community legislation and what measures will the Commission take to ensure
that competition takes place on equal terms and that the rules on the opening of the markets operate
in transparent fashion?

3. Why has the Minister for Development not granted a single supplier’s operating licence when
numerous applications have been submitted and are simply piling up on the authorities’ desks?

4. What does the Commission intend to do to uphold Community law and maintain the security,

diversity and flexibility of supplies in Greece?

5. Are the network operator and the producer/distributor separate entities and what steps have been
taken to separate the commercial interests of DEI from the operational activities of the network?

(1) OJ L 27, 30.1.1997, p. 20.

Answer given by Mrs de Palacio on behalf of the Commission

(26 October 2001)

1. and 2.
Greece was required to implement Directive 96/92/EC of the Parliament and of the Council of
19 December 1996 concerning common rules for the internal market in electricity, by 19 February 2001,
which it achieved through the adoption of Law 2773/99 on 22 December 1999. In addition, the Energy
Regulatory Authority (RAE) was set up in June 2000 and a Transmission System Operator (DESMHE) was
appointed in December 2000 (Presidential Decree 328/2000). Furthermore, some 15 pieces of secondary
legislation have been adopted. Finally, on 19 February 2001, 6500 eligible customers were specified,
equivalent to some 34.2 % of the market. As such, the Commission considers that Greece has complied
with the requirements of Directive 96/92/EC. As with all Member States, the Commission constantly
monitors the situation on the Greek market, to ensure continued compliance with the requirements of the
Directive. No complaints have been received on this issue.

In order

for real competition to develop in Greece,

3. and 4.
two actions are necessary. First,
undertakings from other Member States have to have the effective ability to export to Greek customers.
At the end of 2001 the Commission will publish a Communication on electricity and gas infrastructure
which will, inter alia, address the question of the measures to be taken to fully re-connect Greece to the
it is expected that the
synchronously connected Community grid as rapidly as possible. In addition,

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submarine electricity cable connecting Greece with Italy will enter in operation before the end of 2001.
Second, independent, competing generation within Greece is a precondition for effective competition. To
this end, the Energy Regulatory Authority (RAE) issued on 1 June 2001 six licenses to six consortia of
independent private companies to construct generation plants with a total capacity of about 2 000
Megawatt (MW).

The achievement of security of supply, energy efficiency and diversification to various alternative fuels and
energy sources is a declared policy of both the Commission and the Greek Ministry of Development; the
introduction of natural gas and its use in electricity generation plants is contributing to this end, as well as
the construction of wind farms and the promotion of other renewable sources of energy (e.g. through
National Energy Conservation Agency (KAPE)). The recent construction programmes of new generation
capacity of DEH are based on a variety of fuels for generation of electricity: natural gas, hydroelectricity
and the traditional lignite.

5. With respect to the separation of the network operation activities, the scheme adopted by Greece is
as follows: The Public Electricity Company (DEH) is split into four new entities, one of which is the owner
of the electricity transmission network and responsible for its maintenance, development, extension and
the construction of new lines.

Additionally, an independent Transmission System Operator has been established (DESMHE) as a joint-
stock company, which is responsible for the management of the network, as well as its day-to-day
operation, dispatching and planning of development of the network.

Whilst the Commission has some concern that the Transmission System Operator does not have direct
control over the assets necessary to develop the network E which would be obligatory under the new
Commission proposals for completing the internal electricity market E this situation is not per se an
infringement of the present Directive. The Commisssion will, however, monitor carefully to ensure that
DEH ensures that
these services are available to the Transmission System Operator on a non-
discriminatory basis.

(2002/C 93 E/193)

WRITTEN QUESTION E-2568/01

by Richard Corbett (PSE) to the Commission

(21 September 2001)

Subject: EU assistance for hydrological projects in Spain

Has the Commission verified that any EU assistance provided under the Structural Funds for hydrological
the
projects in Spain is in support of projects which are environmentally sound and which meet
requirements of the Water Directives?

Is the Commission aware of the criticisms that have been made of extraction plans for the river Ebro made
by the Platform for the Defence of the Ebro (PDE)? What is the Commission’s view of these criticisms, and
will that view have an influence on the decisions taken?

Answer given by Mr Barnier on behalf of the Commission

(12 November 2001)

Under Council Regulation (EC) No 1164/1994 of 16 May 1994 establishing a Cohesion Fund (1) and
Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural
Funds (2), any project part-financed from these Funds must conform with Community legislation, including
the rules on environmental protection.

The Commission is aware of
the extraction plans for the Ebro and has met
representatives of the associations opposed to the scheme. It has taken note of the concern expressed in
this connection and will examine the matter in the light of the relevant Community legislation.

the criticism about

(1) OJ L 130, 25.5.1994, as amended by Council Regulations (EC) No 1264/1999 of 21.6.1999 and (EC) No 1265/

1999 of 21.6.1999, in OJ L 161, 26.6.1999.

(2) OJ L 161, 26.6.1999.