Overheidssteun: De Commissie keurt de gewijzigde regelingen van het Fonds ter Compensatie van de organisatie van de elektriciteitsmarkt in Luxemburg goed (en)

The European Commission has concluded that the Luxembourg Compensation Fund arrangements for the organisation of the electricity market are compatible, following modifications, with the state aid rules of the EC Treaty, and in particular the guidelines on environmental aid. The Commission had opened a formal investigation in view of its doubts regarding contribution exemptions benefiting certain consumers and payments made to green electricity producers. It also looked into whether imported green electricity was being treated in a discriminatory manner in relation to that produced domestically. However, Luxembourg has provided evidence allaying the Commission’s doubts and has undertaken to modify the scheme. Exemptions from contributions to the Fund have been abolished and compensation mechanisms have been introduced for imported green electricity.

Competition Commissioner Neelie Kroes said, "This decision authorising the Luxembourg authorities’ modified scheme helps underpin European Union objectives regarding the production of electricity from renewable energy sources in compliance with the rules on state aid."

The Commission had opened a formal investigation into the setting up of the Compensation Fund for the organisation of the electricity market. The Fund is intended to share between distributors and then between consumers the extra costs resulting from the obligation to purchase electricity produced in Luxembourg from renewable energy sources or by co-generation (green electricity).

The Commission had expressed doubts as to the compatibility under Article 87(3)(c) of the EC Treaty of, firstly, exemptions from contributions to the Fund granted to certain companies and, secondly, payments to green electricity producers in Luxembourg as the final beneficiaries of the contributions to the Fund paid by consumers. The Commission also had misgivings regarding the compatibility of the measure with Articles 25 and 90 of the EC Treaty, which prohibit the application of customs duties and charges having equivalent effect specifically on products imported or exported between Member States. In this case, imported electricity was also subject to contributions to the Fund, entailing discrimination against imported green electricity vis-à-vis that produced in Luxembourg, which alone benefited from the Compensation Fund payments.

Following the opening of the procedure, Luxembourg provided evidence as from 2008 showing there was no over-compensation of green electricity producers. It abolished exemptions from contributions to the Compensation Fund as from 1 January 2006 and made the payment of reduced contributions dependent on an undertaking by beneficiaries to protect the environment. Arrangements for the refund of contributions paid for imported electricity were also planned. Finally, Luxembourg undertook to bring its scheme into line with EU law. On the basis of this evidence, the Commission decided to close the formal investigation.

The non-confidential version of the decision will be published under case number C 43/2002 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. The electronic newsletter, the State Aid Weekly e-News, lists the latest state aid decisions published in the Official Journal and on the internet.