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Portugal: EU probes electric firm’s payment for water resources under state aid law

By  |  September 18, 2013

The European Commission announced Wednesday an open investigation into Portuguese electricity firm EDP and its payment to use public water resources to generate electricity, inquiring whether the payment was aligned with state aid law.

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    According to the Commission, Portugal granted extended concessions to EDP in 2007 to use public water resources against more than $1 billion, which, according to the watchdog, was never notified to regulators.

    An investigation was launched by EU regulators over “doubts that EDP paid an adequate price for the concessions” and concerns the company gained a competitive advantage over its competitors, meaning the case falls under state aid rules.

    Further, the Commission has requested related information from other Member States about their use of extended concessions for hydro-power generation.

    Full Content: European Commission

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