Generally speaking, sectors shaped by publicly owned companies and public service obligations are particularly prone to state intervention of various kinds. Pursuant to the Treaty, the rules on state aid contribute to creating competitive energy markets within the Contracting Parties’ territories. by ensuring that certain types of government intervention do not distort competition and trade between Contracting Parties.
In its June 2009 report, the Secretariat expressed its concerns that an effective and comprehensive system for ex ante control of State aid had not been established in all Contracting Parties. As a result, the Secretariat decided to launch a call for a tender for a study which will assess the level of implementation of the Contracting Parties obligations in the field of State aid control. In December 2009, the Secretariat granted the project to a joint bid from Hunton & Williams and Eisenberger & Herzog.
Scope, structure
The study covers State aid and its control in the electricity sectors (generation, transmission, distribution, supply, trade and consumption) in seven of the Contracting Parties to the Treaty. Moldova and Ukraine, the Contracting Parties with the most recent date of accession, were not included in the scope of this study.
The study consists of three parts. There firstly is a description of the current legal and institutional framework of each Contracting Parties for the monitoring of State aid measures granted at national level, including the specific powers and enforcement practice of the relevant national authorities. There also is a comprehensive inventory of State aid measures adopted by the authorities of the seven Contracting Parties. The Part III assesses and evaluates the legislative framework relating to State aid in the electricity sector and its practical application in the territory of each of the seven Contracting Parties included in the study. The benchmark for this evaluation is the law and practice of the EU.
