The Italian Council of State rejects a claim that a tax on large electricity providers constitutes State aid in favour of smaller providers on the grounds that there is no transfer of State resources (Eridis)

On 20 July 2011, the Council of State delivered Decision No. 4388 in which it upheld several TAR Lombardy decisions. Those decisions had partially rejected 14 annulment actions brought by several producers and distributors of electricity, gas, and oil products. Background & facts of the case Several undertakings sought the annulment of several resolutions issued by AEEG, the Italian electricity and gas authority. The resolutions implemented Art. 81(16) of Law Decree 112/2008, which increased the corporate income tax rate by 5.5% for undertakings operating in the oil and gas sectors that had recorded revenue of over EUR 25 m. Art. 81(18) of the law decree prevented those undertakings from passing the tax burden along

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