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EUROPEAN CURRENT SURVEY 16[2006/2007]4 ULR 167

Current Survey

European Union

edited by
Peter Alexiadis and Simona Seikyte
Gibson, Dunn & Crutcher LLP
Brussels

1 October – 30 November 2006 EUROPEAN COMMISSION

Energy

http://www.europa.eu.int/comm/energy/index_en.html
http://www.europa.eu.int/comm/competition/index_en.html
European Commission closes case The European Commission has decided to close infringement procedures against Italy in
against Italy regarding law on view of the measures taken to comply with an ECJ judgment of 2 June 2005 concerning the
investment in energy companies law on investment in energy companies. According to this judgment, the automatic suspension
(IP/06/1366) 12 October 2006 of voting rights for shareholdings in excess of 2 per cent in Italian electricity and gas companies,
where such holdings are acquired by public companies not quoted on the stock exchange
and holding a dominant position in their own domestic markets, is in breach of Article 56
EC on the free movement of capital. The ECJ ruled that the suspension of voting rights
prevents effective participation by investors in the management and control of Italian
undertakings operating in the electricity and gas markets. On 1 August 2006, the Italian
Parliament adopted a law repealing the national rules in question and thereby fully complied
with the judgment of the ECJ.

European Commission opens The European Commission formally requested that Spain explain why the conditions imposed
infringement procedure against Spain by the Spanish Energy Regulator (‘CNE’) that were declared contrary to Community law
for not lifting unlawful conditions have not been withdrawn as requested by a Commission decision adopted under the EU
imposed by CNE on E.ON’s bid for Merger Regulation. The Commission Decision of 26 September 2006 had concluded that
Endesa the CNE’s decision subjecting E.ON’s bid for Endesa to a number of conditions breached
(IP/06/1426) 18 October 2006 Article 21 of the EU Merger Regulation. In particular, the Commission concluded that Spain
had violated the Merger Regulation by: (1) the adoption of CNE’s decision without prior
communication to (and approval by) the Commission; and (2) the submission of E.ON’s
acquisition of control over Endesa to a number of conditions contrary to the EC Treaty
rules on the freedom of establishment and the free movement of capital. Moreover, the
decision required Spain to withdraw without delay the conditions imposed by CNE’s decision
which had been declared incompatible with Community law. The Spanish authorities have
not yet informed the Commission of any steps or measures taken in order to comply with
the Decision.

European Commission unveils its The European Commission has presented its energy efficiency action plan, which contains
action plan on energy efficiency to a package of priority measures covering a range of cost-effective energy efficiency initiatives.
save 20 per cent by 2020 These include actions to make energy appliances, buildings, transport and energy generation
(IP/06/1434) 19 October 2006 more efficient. New energy efficiency standards, the promotion of energy services, and
specific financing mechanisms to support more energy efficient products have also been
proposed. The action plan, which will be implemented over the next six years, emphasises
the considerable potential for reducing losses in the generation, transmission and distribution
of electricity. The action plan proposes the improvement in efficiency of both new and
existing generation capacity and the reduction of transmission and distribution losses. The
plan recognises that energy savings can be achieved, in particular, by ensuring fuel efficiency
in cars, developing markets for cleaner vehicles, ensuring proper tyre pressure and by
improving the efficiency of urban, rail, maritime and aviation transport systems.

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