Press Release: State aid: Commission opens investigation into extension of preferential electricity tariff in Italy

The European Commission has opened an in-depth investigation to establish whether an extension of the regulated preferential electricity tariff granted by Italy to some energy intensive industries complies with EC Treaty state aid rules. This measure, that was not notified to the Commission, modifies the preferential tariff that was in force in 2004 and extends it until 2010. The Commission has doubts about the compatibility of the aid as many of the factories receiving the preferential tariff are located outside the areas eligible for regional aid of this type. In the case of Alcoa’s plant in Sardinia, the extension does not seem to fulfil the requirements of the regional aid guidelines (see IP/97/1137) and could create a serious distortion of competition in the European market of primary aluminium, where energy is an important part of the production costs. The opening of an in-depth investigation gives interested parties the opportunity to comment on the proposed measures. It does not prejudge the outcome of the procedure.

EurActiv, 23.11.09: Alcoa halts Italian plants after EU electricity ruling http://www.euractiv.com/energy/alcoa-halts-italian-plants-eu-el-news-223073

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