Summary of Commission Decision of 5 March 2008 relating to a proceeding under Article 86(3) of the EC Treaty on the maintaining in force by the Hellenic Republic of rights in favour of Public Power Corporation SA for the extraction of lignite (Case COMP/B-1/38.700) (notified under document number C(2008) 824)
Date: 2008-04-15
Institutions: European Commission
Subjects: Greece, control of restrictive practices, electrical industry, lignite, mining extraction, monopoly, public sector, restriction on competition

15.4.2008

EN

Official Journal of the European Union

C 93/3

Summary of Commission Decision

of 5 March 2008

relating to a proceeding under Article 86(3) of the EC Treaty on the maintaining in force by the
Hellenic Republic of rights in favour of Public Power Corporation SA for the extraction of lignite

(Case COMP/B-1/38.700)

(notified under document number C(2008) 824)

(Only the Greek text is authentic)

(2008/C 93/03)

1. On 5 March 2008, the Commission has adopted a decision pursuant to Article 86(3) of the EC Treaty.
The Commission herewith publishes the main content of the decision and the name of the undertaking
concerned, having regard to the legitimate interest of undertaking in the protection of its business
interests. A non-confidential version of the integral text of the decision in the authentic language is avail-
able on the Competition Directorate General website at the following address:

http://ec.europa.eu/comm/competition/antitrust/cases/index.html

2. This decision is addressed to the Hellenic Republic. The subject matter of the procedure is the granting
and maintaining by the Hellenic Republic of a quasi-monopolistic access to lignite in favour of the public
undertaking Public Power Corporation SA (PPC), a corporation seated in the Municipality of Athens,
Greece. The measures adopted by the Hellenic Republic are such that PPC has been systematically granted
rights to exploit nearly all medium and large lignite deposits in Greece. These measures have led to the
current situation where PPC owns the exploitation rights for most (91 % in volume) of the public
reserves licensed for exploitation in Greece.

3. Lignite is the most attractive fuel for electricity generation in the Greek market and lignite generation
represents about 60 % of total electricity produced in Greece despite the fact that lignite-fired capacity
represents only 40 % of total installed capacity in Greece.

4. PPC is controlled by the Hellenic Republic and is thus a public undertaking. Accordingly, Article 86 is

applicable.

5. By granting and maintaining in force quasi-monopolistic rights giving the public undertaking PPC privi-
leged access to lignite exploitation, and accordingly to lignite-based electricity, the Hellenic Republic
assured PPC a privileged access to the cheapest available fuel for electricity production, which gave this
company the possibility to maintain a dominant position in the wholesale electricity market at a level
close to monopoly by excluding or hindering market entry by new-comers.

6. The Decision finds that the Hellenic Republic has infringed Article 86(1), in conjunction with Article 82

of the EC Treaty.

7. The Decision calls upon the Hellenic Republic to propose effective measures so as to put an end to the

infringement.