Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (Text with EEA relevance)
Date: 2002-02-15
Institutions: European Commission
Subjects: Scotland, State aid, control of State aid, energy saving, small and medium-sized enterprises, soft energy

C 42/2

EN

Official Journal of the European Communities

15.2.2002

Information communicated by Member States regarding State aid granted under Commission
Regulation (EC) No 70/2001 of 12 January 2001 on the application of Articles 87 and 88 of the
EC Treaty to State aid to small and medium-sized enterprises

(2002/C 42/02)

(Text with EEA relevance)

Aid No: XS/41/2001

Notes:

Member State: United Kingdom

Region: Scotland

Title of aid scheme or name of the company receiving an
individual aid: Scottish energy demonstration scheme

Legal basis: Section 5(1) of the Science and Technology Act
1965

Annual expenditure planned under the scheme or overall
amount of
individual aid granted to the company:
Maximum annual budget during the period 2001-2006
should not exceed GBP 1 million

Maximum aid intensity: Aid levels would be offered to bene-
ficiaries in gross terms. They would be calculated individually
in terms of the circumstances of the development, and recal-
culated in net grant equivalent (nge) terms as appropriate in
order to check that they do not exceed the following maximum
nge or nge and gross level combinations. Proposed aid levels
would then be corrected if necessary to conform with the
maximum aid levels defined below (definitions as in Regulation
(EC) No 70/2001):

1. These are maximum levels equal to maximum nge and SME
supplements as per the AA map approved in July 2000 for
the UK. Actual levels of aid offered are set at the minimum
level necessary to enable the project
to proceed with a
viable three-year business plan

2. Nge would be calculated for control purposes by computer
on each project using the procedures in the Annex to the
guidelines on national regional aid (OJ C 74, 10.3.1998)

3. These ceilings will be replaced by the specific limits for
certain sectors when special EU rules are in force. At the
commencement of this scheme, these sectors were: ship-
building, coal, steel, synthetic fibres, motor vehicles and
transport

A condition of aid under this scheme is that it will be main-
tained in the recipient region of Scotland for at least five years

The ceilings in Table 1 apply to intensity of the aid calculated
either as a percentage of the investment’s eligible costs or as a
percentage of the wage costs of employment created by the
carrying out of an investment, or a combination thereof,
provided that the aid does not exceed the most favourable
amount resulting from the application of either calculation

Table 1

AID FOR CONSULTANCY SERVICES

Investment aid intensity limits

Maximum aid intensity is 50 % gross towards eligible costs

Qualifying criteria for beneficiary

Maximum aid level

Eligible costs are:

In 87(3)(c) areas qualifying under sparsity of popu-
lation

30 % nge

In 87(3)(c) areas not qualifying under sparsity of
population qualifying as a 20 % under UK assisted
area definition

20 % nge + 10 %
gross

In 87(3)(c) areas limited to 10 % maximum nge
under UK assisted area definition

10 % nge + 10 %
gross

In non-assisted areas for small enterprises (1 to 49
jobs)

15 % gross

Medium-sized enterprises
(50-250 jobs)

in non-assisted areas

7,5 % gross

(cid:151) outside consultants. The activities on which the consultants
shall be employed will be towards specific business devel-
opment objectives and not of a continuous or ongoing
nature. They will not provide services in connection with
the normal operating expenditure such as management
supervision, tax or financial processing, legal services and
advertising

(cid:151) participation for the first time at a particular trade fair or
to normal
exhibition. Eligible costs are those additional
business operations, and specifically costs
incurred in
renting a stand or space, setting up, and running the
presence at the event

15.2.2002

EN

Official Journal of the European Communities

C 42/3

MAXIMUM SCALE OF PROJECT AND AID

Individual awards under this scheme will become ineligible for
aid if either of
the following limits applies to the project
proposal:

1. the total eligible cost of

the project is at least EUR 25

million and:

(cid:151) in areas which do not qualify for regional aid under the
current UK national assisted area map, the gross aid
intensity is at least 50 % of the ceilings laid down in
Article 4(2) of Regulation (EC) No 70/2001, Annex 1,

(cid:151) in areas which qualify for regional aid,

the net aid
intensity is at
the net aid ceiling as
determined in the UK national assisted areas map; or

least 50 % of

2. the gross aid amount is at least EUR 15 million

Date of implementation: 31 May 2001

Duration of scheme or individual aid award: Scheme ends
31 May 2006

Objective of aid: The Scottish Executive is committed to
working together with the people of Scotland to build a
sustainable country. To that end Scottish Executive Ministers
want to encourage the take-up of energy efficiency measures
and clean energy sources in Scotland

The purpose of the scheme is to provide grant aid to encourage
the development, demonstration, application and replication of
energy efficiency measures and renewable energy technologies
within Scotland. In the case of SMEs the funds will be utilised
to assist them invest in the creation of a new establishment, the
extension of existing premises or making fundamental change
in the production process of an existing establishment through
rationalisation, diversification or modernisation. We
are
especially keen to support projects in the SME sector, as
often these companies do not have ready access to funds to
develop innovative energy practices. An essential element to
the scheme is its emphasis on promoting projects that have
a demonstration value. Consequently, all recipients of grant
assistance under
the scheme must be prepared to afford
reasonable access to their projects for a three-year period

The aim of this initiative is to facilitate access to the provision
of cleaner, more efficient and sustainable energy. It provides an
opportunity for SMEs,
the public and voluntary sectors to
pursue best practice in energy efficiency thereby reducing
their environmental impact, contributing to the improvement
of the global environment and mitigating the impact of climate
change. The introduction of such a scheme will encourage and
assist SMEs and others to adopt a more sustainable approach to
their activities. The scheme will stimulate activity within the

SME, local authorities and the voluntary sectors, which could
lead potentially to the development of new markets in low
carbon technologies.
It will encourage resource efficiency
across all these sectors. Bids in which private industrial and
commercial organisations collaborate as part of consortium
bids will be strongly encouraged

Economic sector(s) concerned: All sectors may be assisted,
but with the specific exceptions of the activities as in Article 1
of Commission Regulation (EC) No 70/2001 concerning Treaty
Annex I goods, export-related aid and aid contingent upon the
In addition, any special restrictions
use of domestic goods.
contained within specific
rules via Community
Directives or Regulations will apply when these sectors are
assisted under this scheme

sectoral

This scheme does not apply to:

1. activities linked to the production, processing or marketing

of products listed in Annex 1 to the Treaty

2. aid to export-related activities, namely aid directly linked to
the quantities exported, to the establishment and operation
of a distribution networkor to other current expenditure
linked to the export activity

3. aid contingent upon the use of domestic goods rather than

imported goods

Name and address of the granting authority:

Scottish Executive
(Scottish Energy Efficiency Office)
2nd floor
Meridian Court
5 Cadogan Street
Glasgow G2 6AT
United Kingdom

Other information: This scheme will be applied in accordance
with Regulation (EC) No 70/2001 of 12 January 2001

Contact:

Allan Mackie
Scottish Energy Efficiency Office
2nd floor
Meridian Court
5 Cadogan Street
Glasgow G2 6AT
United Kingdom
Tel. (44-141) 242 58 14
Fax (44-141) 242 58 08
E-Mail: allan.mackie@scotland.gsi.gov.uk