How to Use Economic Tools to Ensure the Proportionality of Aid (Commission Decision SA.34938 on a gas storage facility in Poland)* Introduction Normally, economic analysis is used by the Commission to find out whether a measure confers an abnormal advantage to an undertaking. This would be the case, for example, when a public authority makes an investment that generates a return that falls below what the market would demand. The recipient undertaking derives an abnormal advantage [i.e. an advantage that would not be possible under normal market conditions] because it pays out a lower dividend than otherwise. This economic reasoning is used when the Commission examines whether the measure in question falls within the scope of Article 107(1). It is often asked by State aid officials
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The EU Commission approves State aid for the expansion of a gas storage facility that could enable the entry of more gas suppliers onto the Polish market (PGNiG)
* 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.
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