The EU Commission holds that an incompatible aid can be recovered from an undertaking that continues some of the activities of an insolvent undertaking that received the aid (Termoelectrica / Electrocentrale Deva)

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Commission decision 2015/1877: Aid granted by Romania via Hidroelectrica to Termoelectrica and Electrocentrale Deva [OJ L275, 20 October 2015]* This is a peculiar case. All three companies are owned by the state. Hidroelectrica generates much of its electricity from hydroelectric power. However, because of the fluctuations in electricity production from renewable sources of energy, Hidroelectrica had to buy extra electricity from other generators. In this case it bought electricity from Termoelectrica and Electrocentrale Deva. These two companies produced electricity from expensive coal and therefore, their production costs were above market prices. Hidroelectrica entered into ten-year contracts with the other two companies that committed it to buy all

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Phedon Nicolaides, The EU Commission holds that an incompatible aid can be recovered from an undertaking that continues some of the activities of an insolvent undertaking that received the aid (Termoelectrica / Electrocentrale Deva), 20 April 2015, e-Competitions Bulletin Energy & State aid, Art. N° 77181

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