Press Release: State aid: Commission endorses Austrian aid to green electricity producers; opens in-depth inquiry into potential aid for large energy users

The European Commission authorised under EC Treaty state aid rules subsidised feed-in tariffs in Austria for producers of green electricity (i.e. electricity produced from environmentally-friendly sources). The measures were designed to accelerate and increase the development of electricity production from renewable energy sources without granting over-compensation for extra costs incurred. They were therefore in line with the requirements of the Environmental Aid Guidelines. At the same time, the Commission opened an in-depth investigation to establish whether certain provisions of the new Austrian Green Electricity Act, which may favour large energy consumers, infringes the state aid rules. According to the new Act, energy intensive industries may be exempted from their obligation to purchase green electricity and to contribute to the funding of green electricity in Austria. As a result, enterprises not qualifying for the exemption may be burdened with extra cost for purchasing additional amounts of green electricity. The opening of an in-depth investigation will allow third parties to comment on the measure under scrutiny. It does not prejudge the Commission’s final decision.