Press Release: State aid: Commission opens formal investigation into long term power purchase agreements in Hungary

The European Commission on 10 November 2005 opened a formal investigation under EC Treaty state aid rules (Article 88(2)) into Hungary’s long term power purchase agreements (PPAs) concluded between the state-owned electricity network operator MVM Rt. and the power generators. The Commission was having doubts about the compatibility of the PPAs with EC Treaty state aid rules that require Member States not to grant aids or subsidies which distort or threaten to distort competition within the EU’s Single Market. The investigation was to allow the Commission to obtain more information on the PPAs and give interested third parties an opportunity to comment.

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