Case ECS-07/11: Kosovo* / State aid

summary of the case

registered: ex officio 2011

 

 

 

Since the entry into force of the Energy Community Treaty in 2006, the Contracting Parties are under an obligation to implement, i.e. to transpose and apply to each individual case, in their energy sectors the principle prohibition of State aid as applicable within the European Union. This commitment entails the obligation to establish institutions and procedures apt to enforce the State aid prohibition. As State aid may distort competition and affect cross-border trade in energy, the control of aid granted by public authorities is of key importance for the establishment of a regional energy market based on competition.

The Secretariat has assisted the authorities in Kosovo* in drafting State aid legislation. Failing the adoption of a Law within a reasonable time frame and due to the lack of enforcement, however, the Secretariat decided to follow up on this non-compliance by an Opening Letter.