ELECTRICITY : EU OPENS INVESTIGATION INTO PREFERENTIAL PRICES IN ITALY.

The European Commission opened an in-depth investigation on 20 July to establish whether an extension until 2010 of the regulated preferential electricity tariff granted by Italy since 2004 to four Italian companies (ThyssenKrupp Acciai Speciali Terni, Cementir, Nuova Terni Industria Chimica and Alcoa) is consistent with state aid rules. This extension was not notified to the Commission, which has doubts about the compatibility of the aid as many of the factories receiving the preferential tariff are located outside the areas eligible for regional aid of this type. The four companies are currently receiving compensation from Cassa Conguaglio del Mercato Elettrico, a state fund. The compensation is equivalent to the difference between the market price of electricity and...

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