Edition 1442
23 September 2017
Edition: 1442

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"No state aid" in extension of EDP’s hydro-power concession, EC says

by TPN/ Lusa, in News · 16-05-2017 07:36:00 · 0 Comments

Portugal’s extension of hydroelectric power concessions to national power company EDO, did not involve state aid, the European Commission said on Monday ending an investigation that began in 2013.

"No state aid" in extension of EDP’s hydro-power concession, EC says

 

The commission said that, in September 2013, after receiving complaints, it started an investigation of the situation.

 

“The main concerns were the price paid by EDP for the extension of the concessions and the impact that extension would have on the market, taking into consideration EDP’s position in the Portuguese market,” the commission said.

 

Noting that the use of public water resources for electricity production in Portugal requires a concession contract, the Commission said that in 2007 Portugal extended several hydro-power concessions beyond the original date set (2020, on average), and that these extensions had been granted in return for a payment of €704 million.

 

During the investigation, “the Commission found that the amount paid by EDP for the extension of the hydro-power concessions was compatible with market conditions," and concluded that, “the financial methodology used to value the extension of the concessions was appropriate and resulted in a fair market price."

 

Therefore, the European Commission now concludes that EDP’s payment for the extensions “does not involve state aid,” the commission said on Monday.

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Edition 1442
23 September 2017
Edition: 1442

Read this week's issue online exactly as it appears in print.

Twitter