2002/787/ECSC: Commission decision of 23 July 2002 concerning State aid to the French coal industry for 1998 to 2001 (Text with EEA relevance.) (notified under document number C(2002) 2792)
Date: 2002-07-23
Institutions: European Commission
Subjects: France, State aid, coal industry, control of State aid, production quota, redemption

L 282/70

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Official Journal of the European Communities

19.10.2002

COMMISSION DECISION

of 23 July 2002

concerning State aid to the French coal industry for 1998 to 2001

(notified under document number C(2002) 2792)

(Only the French text is authentic)

(Text with EEA relevance)

(2002/787/ECSC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Coal and Steel Community,

Having regard to Commission Decision No 3632/93/ECSC of 28 December 1993 establishing Community
rules for State aid to the coal industry (1),

Having regard to Commission Decision 2002/541/ECSC of 9 April 2002 concerning the use of State aid
to the French coal industry for 1994 to 1997 (2),

Whereas:

I

(1)

(2)

(3)

By letter of 18 June 2001, France notified the Commission, in accordance with Article 5(2) of
Decision 2002/541/ECSC, of the amounts of compensation for the guaranteed concession price
paid by the public industrial and commercial undertaking Charbonnages de France (EPIC CdF) to
the economic interest grouping CdF Energie (CdF Energie) for 1998 to 2001. In the letter, France
also stated that it would comply with Decision 2002/541/ECSC.

The Commission has already authorised, for 1998 to 2001, the aid notified by France to the coal
industry, except as regards a provisional sum of FRF 45 million (EUR 6 860 206) for each of the
years from 1998 to 2000 in accordance with Decisions 2001/85/ECSC (3) and 2001/58/ECSC (4),
and FRF 10 million (EUR 1 524 490) for 2001 in accordance with Decision 2001/678/ECSC (5). In
accordance with these decisions, the Commission must take a decision on the amounts which it
has not authorised for 1998 to 2001 in the light of the outcome of the examination of the
complaint submitted on 26 August 1997 by Thion & Cie, Maison Balland Brugneaux, Société
Nouvelle Vinot Postry, Etablissements Lekieffre and Charbogard about Charbonnages de France.
The complaint concerned the alleged misuse of State aid which France grants on an annual basis to
in the framework of
Charbonnages de France, after authorisation by the Commission,
Decision No 3632/93/ECSC.

The Commission has adopted Decision 2002/541/ECSC which is concerned with the various facts
of the abovementioned complaint. It took the view that the State aid which France granted to the
coal industry which was allocated or was likely to have been allocated as compensation for the
guaranteed concession price paid by EPIC CdF to CdF Energie was incompatible with the common
market. It also took the view that all or part of the amounts which it had not authorised for 1998 to
2001 was intended to be allocated, or was allocated before a Commission Decision was taken, as
compensation for the guaranteed concession price paid by EPIC CdF to CdF Energie. It therefore
requested France, in accordance with Article 5(2) of Decision 2002/541/ECSC, to notify it of the

(1) OJ L 329, 30.12.1993, p. 12.
(2) OJ L 176, 5.7.2002, p 26.
(3) OJ L 29, 31.1.2001, p. 45.
(4) OJ L 21, 23.1.2001, p. 12.
(5) OJ L 239, 7.9.2001, p. 35.

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amounts of compensation for the guaranteed concession price for 1998 to 2001 in order to enable
it to take a decision on the amounts not authorised for those years.

(4)

The compensation for the guaranteed concession price paid by EPIC CdF to CdF Energie for 1998 to
2001 amounts to:

— For 1998: EUR 2 483 939,

— For 1999: EUR 2 003 180,

— For 2000: EUR 79 790,

— For 2001: EUR 30 764.

II

(5)

(6)

(7)

(8)

(9)

The guaranteed concession price is a clause which is included in certain contracts between Sidec, a
subsidiary of the Charbonnages de France group, and its industrial customers. These contracts are
concerned with the provision of a coal-fired heating system and the supply of coal for the system.
The purpose of the guaranteed concession price is to ensure that, throughout the duration of the
contract, users of energy produced from coal will have a competitive price calculated by reference
to competing fuels, mainly fuel oil.

The sharp fall in the price of petroleum products from 1986 obliged Sidec to apply the guaranteed
concession price mechanisms permanently since the price of the thermal unit from fuel oil became
more competitive than the price of the thermal unit from coal. According to the terms of the
contracts concluded by Sidec, the application of the guaranteed concession price clause involved
reducing the variable factors in the price of the thermal unit produced from coal, chiefly the price
of that fuel.

CdF Energie, which provides Sidec with the coal needed to supply its industrial customers, supports
the application of the guaranteed concession price, as a result of which Sidec reduces the price of
the thermal unit produced from coal charged to its customers. As a result of the substantial
discounts granted to Sidec, CdF Energie sells domestic and imported coal at a price lower than the
international rates for industrial coal of the same type sold on the competitive market. EPIC CdF, in
turn, refunds to CdF Energie the amount of the discounts granted to Sidec through the application
of the guaranteed concession price.

III

In accordance with Decision 2002/541/ECSC, the amounts paid by EPIC CdF to CdF Energie as
compensation for the guaranteed concession price and paid on by CdF Energie to Sidec came from
the State aid paid by France each year to support losses due to coalmining. The Charbonnages de
France group’s accounts in particular show that EPIC CdF would not have been able to pay the
compensation for the guaranteed concession price if it had not received State aid from France.

This aid must be regarded as incompatible with the provisions of Decision No 3632/93/ECSC as it
does not comply with the criteria and conditions provided for in that Decision to be compatible
with the functioning of the common market. Contrary to the provisions of Article 3 of
Decision No 3632/93/ECSC, the aid used by CdF Energie to cover the discounts related to the
application of the guaranteed concession price meant that the Charbonnages de France group
charged delivered prices for coal below those for coal of a similar quality from third countries.
Furthermore, the compensation for the guaranteed concession price was paid to CdF Energie for
sales to Sidec of both national and imported coal. However, aid which may be granted by the
Member States in accordance with Decision No 3632/93/ECSC is intended solely for Community
coal. Lastly, the compensation for the guaranteed concession price, inasmuch as it led Sidec to
charge prices for coal lower than those generally charged on the international markets, has distorted
competition contrary to the common market.

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Official Journal of the European Communities

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IV

(10)

In the light of the foregoing, for 1998 the Commission is able to authorise aid for the reduction of
activity, in addition to that authorised by Decision 2001/85/ECSC, totalling EUR 4 376 267. The
balance of the unauthorised amount of EUR 2 483 939, which is considered to cover the
compensation for the guaranteed concession price for that year, is incompatible with the provisions
of Decision No 3632/93/ECSC. If the latter amount has been paid to Charbonnages de France
before a Commission Decision authorising it has been taken, it must be recovered.

1998

Decision 2001/85/ECSC

(in EUR)

Aid for the reduction of activity notified by France (calculated on the
basis of actual operating losses)

Unauthorised aid (provisional amount)

393 013 566

6 860 206

A

B

Authorised aid

386 153 361

C = A - B

Losses on current production likely to be covered by aid for the
reduction of activity (actual amount)

This Decision

Lowest price guarantee

393 013 566

2 483 939

D

E

Aid for the reduction of activity compatible with Decision No 3632/
93/ECSC

390 529 628

F = D - E

Additional amount of aid for the reduction of activity to be
authorised (as compared with the amount of aid already authorised
by Decision 2001/85/ECSC)

4 376 267

F - C

(11) The amount of compensation for the guaranteed concession price for 1999 considered to be
incompatible with Decision No 3632/93/ECSC is EUR 2 003 180. Furthermore, the actual amount
of losses on current production for that year amounts to EUR 355 700 000. In view of these facts,
all of the aid for the reduction of activity above an amount of EUR 353 696 820 must be recovered,
i.e. an amount of EUR 594 696 as compared with the amount initially authorised by Decision 2001/
85/ECSC.

1999

Decision 2001/85/ECSC

(in EUR)

Aid for the reduction of activity notified by France (calculated on the
basis of actual operating losses)

Unauthorised aid (provisional amount)

361 151 722

6 860 206

A

B

Authorised aid

354 291 516

C = A - B

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This Decision

Losses on current production likely to be covered by aid for the
reduction of activity (actual figures notified by France on 6 March
2001)

Lowest price guarantee

355 700 000

2 003 180

D

E

Aid for the reduction of activity compatible with Decision No 3632/
93/ECSC

353 696 820

F = D - E

Amount of aid for the reduction of activity to be recovered (as
compared with the amount authorised by Decision 2001/85/ECSC)

(594 696)

F - C

(12) The amount of compensation for the guaranteed concession price paid in 2000 considered to be
incompatible with Decision No 3632/93/ECSC amounts to EUR 79 790. Furthermore, the actual
amount of losses on current production, excluding interest charges on loans taken out by
Charbonnages de France in 1997, 1998 and 1999 (6), amounts for that year to EUR 352 300 000.
In view of
the aid for the reduction of activity above an amount of
EUR 352 220 210, excluding the interest charges on the loans taken out by Charbonnages de
France in 1997, 1998 et 1999, i.e. an amount of EUR 3 900 694 as compared with the amount
initially authorised in Decision 2001/58/ECSC, must be recovered from the Charbonnages de
France group.

these facts, all of

2000

Decision 2001/58/ECSC

(in EUR)

Aid for the reduction of activity notified by France (calculated on the
basis of actual operating losses)

Unauthorised aid (provisional amount)

362 981 110

6 860 206

A

B

Authorised aid

356 120 904

C = A - B

This Decision

Losses on current production likely to be covered by aid for the
reduction of activity (actual figures notified by France on 27 March
2002)

Lowest price guarantee

352 300 000

79 790

D

E

Aid for the reduction of activity compatible with Decision No 3632/
93/ECSC

352 220 210

F = D - E

Amount of aid for the reduction of activity to be recovered (as
compared with the amount authorised by Decision 2001/58/ECSC)

(3 900 694)

F - C

(6) See Decision 2001/58/ECSC, Article 1, second indent.

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(13)

For 2001, the Commission is able to authorise aid for the reduction of activity, in addition to that
authorised by Decision 2001/678/ECSC, totalling EUR 1 493 727. The balance of the unauthorised
amount of EUR 30 764 which is considered as covering the compensation for the guaranteed
concession price for that year is incompatible with the provisions of Decision No 3632/93/ECSC.
If the latter amount was paid to Charbonnages de France before a Commission decision authorising
it was taken, it must be recovered.

2001

Decision 2001/678/ECSC

(in EUR)

Aid for the reduction of activity notified by France (calculated on the
basis of actual operating losses)

Unauthorised aid (provisional amount)

318 600 000

1 524 490

A

B

Authorised aid

317 075 510

C = A - B

This Decision

Losses on current production likely to be covered by aid for the
reduction of activity (estimated amount)

318 600 000

Lowest price guarantee

30 764

D

E

Aid for the reduction of activity compatible with Decision No 3632/
93/ECSC

318 569 236

F = D - E

Amount of aid for the reduction of activity to be recovered (as
compared with the amount authorised by Decision 2001/678/ECSC)

1 493 727

F - C

(14) The amounts to be recovered must be considered an unfair advantage in the form of an unjustified
cash advance and, as such, are liable to charges at the market rate payable by the recipient. The
interest on the sums to be repaid by the Charbonnages de France group is calculated from the date
on which the aid for the year concerned was paid to the recipient undertaking,

HAS ADOPTED THIS DECISION:

Article 1

1.
France is authorised to grant to the French coal industry, for 1988, aid for the reduction of activity,
in addition to that authorised by Decision 2001/85/ECSC, totalling EUR 4 376 267. the balance of the
amount of aid on which the Commission had to take a decision in accordance with Article 2(a) of that
Decision, namely EUR 2 483 939, therefore cannot be paid.

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2.
If France has already paid the sum of EUR 2 483 939 referred to in paragraph 1 to the Charbonnages
de France group before a Commission Decision has been taken, France shall take all necessary measures
to recover this amount from the Charbonnages de France group.

3.
Recovery shall be immediate and in accordance with the procedures laid down in French law,
provided that these permit the immediate and effective implementation of this Decision. The amounts to
be repaid must include interest at the market rate from the date the aid was made available to the
beneficiary to its actual recovery.

Article 2

1.
France shall take all necessary measures to recover the aid for the reduction of activity above a total
amount of EUR 353 696 820 for 1999, i.e. an amount of EUR 594 696 as compared with the amount
initially authorised in Decision 2001/85/ECSC.

The amounts to be repaid by the Charbonnages de France group shall be recovered in accordance

2.
with Article 1(3).

Article 3

1.
France shall take all necessary measures to recover the aid for the reduction of activity above a total
amount of EUR 352 220 210 for 2000, excluding the interest charges referred to in the second indent of
Article 1 of Decision 2001/58/ECSC , i.e. an amount of EUR 3 900 694 as compared with the amount
initially authorised in that Decision.

The amounts to be repaid by the Charbonnages de France group shall be recovered in accordance

2.
with Article 1(3).

Article 4

1.
France is authorised to grant to the French coal industry, for 2001, aid for the reduction of activity,
in addition to that authorised by Decision 2001/678/ECSC, totalling EUR 1 493 727. The balance of the
amount of aid on which the Commission had to take a Decision in accordance with Article 1(a) of that
Decision, namely EUR 30 764, therefore cannot be paid.

If France paid the amount of EUR 30 764 referred to in paragraph 1 to the Charbonnages de France

2.
group before a Commission Decision was taken, it shall be recovered in accordance with Article 1(3).

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France shall inform the Commission, within two months of the notification of this Decision, of the
measures it has taken to comply with it.

Article 5

This Decision is addressed to the French Republic.

Article 6

Done at Brussels, 23 July 2002.

For the Commission

Loyola DE PALACIO

Vice-President