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Nuclear State Aid: New Complaint Filed Against Slovakia (Brussels & Bratislava) The European Commissioner for Competition, Mrs Neelie Kroes, has today been asked to investigate an intended subsidy scheme for the nuclear industry in Slovakia. Friends of the Earth Europe and two Slovak environmental organisations have filed a formal complaint alleging that a plan to levy ALL electricity consumers in order to fund future nuclear decommissioning would be unlawful under EC law and so should not proceed. The firm that would benefit from the aid, state-owned Slovenské Elektrárne a.s. (SE) currently operates six nuclear reactors that together supply around half of the country’s power. The government in Bratislava is also preparing to privatise 66% of SE, and in December conditionally accepted a €840M offer from the Italian firm ENEL. However, the sale will not be completed until an option to build two more reactors is considered, nor until it is clarified who will cover any shortfall in financing post-closure nuclear liabilities. Currently the state-controlled decommissioning fund is thought to contain less than 10% of the 126 billion Slovak crowns (€3.276bn) that, according to official forecasts, are needed to dismantle reactors and manage radioactive waste. Although SE will continue to make further contributions to the fund, the projected income will not be enough to meet expected costs. Friends of the Earth campaigner, Mark Johnston said: “The Slovak government must not be allowed to aid one nuclear company with unfair market distortions, particularly not a company that it owns and is trying to sell. Slovenské Elektrárne’s costs should be met entirely from its sales revenues and not with extra back-door subsidies. The European Commission must fulfil its legal duties and ensure that this aid plan is investigated and blocked”. Commissioner Kroes declared recently that she expects to get tough on governments that support “fat duck” companies. Friends of the Earth believes nuclear state aids will be a key test of her commitment to this aim. If the Commission launches an inquiry into this complaint, it will be the fourth nuclear state aid investigation in less than a year. Substantial aid to nuclear operator British Energy plc was granted last September, while two other cases concerning the UK and Finland remain under investigation. “The increasing number of nuclear state aid cases points to a systemic problem in funding post-closure nuclear liabilities. The Commission, as well as probing specific aid claims, must also put forward a new internal market law to guarantee every nuclear operator meets all its costs exclusively from sales revenues. Nuclear state aids cannot become the norm,” added Mr Johnston. _____________________________ NOTES: 1. The complaint takes the form of a six-page memorandum and is available by email on request. 2. The deficiency in the decommissioning fund arises in part from it being established only in 1995, from the relatively low level of contributions since then, and from the removal of funds to pay for the clean-up of an experimental reactor (A1), which was closed following an accident in 1977. 3. Due to poor safety standards, two SE reactors at Bohunice (collectively known as V1) are subject to the 2003 EU Accession Treaty and so legally must close in 2006 and 2008 respectively. Compensation for the closure of these units is already being provided by the EU (via EBRD) and could be extended for the period 2007-13. CONTACTS: Mark Johnston +32 (0) 2 542 6101 Peter Mihok +421 48 4123 859 ZA MATKU ZEM (For Mother Earth Slovakia), Bratislava, SK http://www.enviroservis.sk
Friends of the Earth Europe campaigns
for sustainable and fair societies and for the protection of the environment, |