Competition Council notifies EC about state aid in energy sector

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The Competition Council approved the state aid scheme regarding the support for investment in the extension and modernization of the networks of distribution of electricity and natural gas, sending to the European Commission (EC) its notification.

The scheme, initiated by the Ministry of Economy, will be put into application after the getting of the approval from the community forum, as well as from national funds. The scheme will run until 2013, with a total budget worth worth 28.4 million euros.

„The scheme is aimed at the support of investment in the networks for the distribution of electric energy and natural gas, so that the distribution networks be reduced, for increasing the supply security and avoiding crisis situations, and of course for reaching high quality standards to the benefit of all consumers,” said head of the Competition Council Bogdan Chiritoiu.

The potential beneficiaries are enterprises owning networks for the distribution of electricity and natural gas, or that concluded legal acts with these operators of distribution, regulating the way in which the networks or the stations in their ownership are used ” said head of the Competition Council Bogdan Chiritoiu.

The potential owners are enterprises owing networks for the distribution of electricity and natural gas and which are operators of distribution of electric energy, that concluded legal acts with these distribution operators regulating the way of using the networks or the stations in their ownership.

The maximum value of the state aid that can be granted is of 40 percent of the eligible costs of the investment for those investing in the region of Bucharest-Ilfov and 50 percent for the other seven development regions.

For small enterprises, a bonus of 20 percent is granted, and for the small ones the bonus is of ten percent.

In order to be eligible, those asking for money have not to be in a financial-economic difficulty and not to be the object of a procedure of non-finalization of recouping of the state aid declared illegal or incompatible or abusively used, to make the proof of the capacity of state aid declared illegal, to have the human resources necessary for the implementation of the project, etc.

„This scheme of state aid has been drawn up in application of the priority axis 4 of „Increase of the Energy Efficiency and of the Security of the Supply in the Context of the Combating of the Climate Changes”, as part of the Sectoral Operational Programme on „Increase in the Economic Competitiveness.”

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