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Five separate probes launched into Hidroelectrica’s preferential tariffs

By  |  April 25, 2012
Five separate probes launched into Hidroelectrica’s preferential tariffs

The European Commission has opened five in-depth investigations into Romanian state-controlled hydroelectricty generator Hidroelectrica. The investigations center around Hidroelectrica’s preferential electricity tariffs, used to purchase or sell electricity to traders, industrial clients, and producers. The Commission is concerned that the tariffs favor beneficiaries by lowering their operating costs and/or increasing their revenues. Such actions would constitute indirect subsidies in violation of EU state aid rules.

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    In particular, the Commission has highlighted Hidroelectrica’s 2009 and 2010 contracts with ArcelorMittal and a contract with ALRO Slatina that indicate that the companies benefited from below-market electricity prices.

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    Full content: EC Press Release

     

    Related content: Some Reflections on the European Commission’s State Aid Policy (Philip Lowe, European Commission)

     

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