A Dutch Court holds that a State aid to a coal gasification plant notified to the EU Commission is included in the scope of a former positive Commission decision and refuses to await the second Commission’s decision (Demkolec)

The case at hand concerns an experimental coal gasification plant, Demkolec, owned by NV SEP, the legal predecessor of Nederlands Elektriciteit Administratiekantoor (NEA). The Dutch public authorities decided to support the building of Demkolec for environmental reasons. Since the beginning, this project was expected to be loss-making. Yet, under the Dutch Electricity Act of 1989, it was possible to compensate Demkolec's higher costs through a system of cost pooling and by applying a national basic rate. However, as a consequence of Directive 96/92/EC (Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity, OJEC L 27, 30 January 1997, pp. 20-29), the liberalisation of the previously

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Authors

  • European Commission - DG HR (Brussels)
  • European Court of Justice (Luxembourg)

Quotation

Tristan Baumé, Sally Janssen, A Dutch Court holds that a State aid to a coal gasification plant notified to the EU Commission is included in the scope of a former positive Commission decision and refuses to await the second Commission’s decision (Demkolec), 1 August 2007, e-Competitions Bulletin August 2007, Art. N° 15034

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