2004/50/EC: Commission Decision of 17 September 2003 on the exemption from the Climate Change Levy which the United Kingdom is planning to implement in respect of coalmine methane (Text with EEA relevance) (notified under document number C(2003) 3242)

• Articles: 2

Article 1

The exemption from the Climate Change Levy, instituted by Section 126 of the Finance Act 2002, which the United Kingdom is planning to implement in respect of electricity produced from coalmine methane from abandoned coalmines is compatible with the common market within the meaning of Article 87(3)(c) of the Treaty.

Implementation of the aid is accordingly authorised for a period of five years.

Article 2

This Decision is addressed to the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 17 September 2003.

For the Commission

Mario Monti

Member of the Commission

(1) OJ L 83, 27.3.1999, p. 1.

(2) OJ C 69, 22.3.2003, p. 9.

(3) See footnote 2.

(4) See Commission Decision of 28 March 2001 relating to State aid C 18/2001 - United Kingdom, Climate Change Levy, (OJ C 185, 30.6.2001, p. 22), and in particular p. 35 and 36 on the exemption for electricity from some energy sources.

(5) OJ C 37, 3.2.2001, p. 3.

(6) OJ L 283, 27.10.2001, p. 33.

(7) OJ L 205, 2.8.2002, p. 1.

(8) Fisc 311 Rev 1 ADD of 9.12.2002.

(9) It cannot be excluded that suppliers do not pass on the entire benefit of the exemption and keep a small part of it through their price negotiations with electricity generators using CMM. This is nevertheless supposed to be minimal. In all previous cases concerning exemptions or reductions from eco-taxes on electricity charged to suppliers, the Commission has considered that the real beneficiaries of the aid are the producers of electricity.

(10) [2001] ECR I-2099.

(11) NN 27/2000 - Germany, EEG law, OJ C 164, 10.7.2002, p. 5.

(12) For the same reasoning see Commission Decision on State aid N74/B/2002 - Finland; OJ C 59, 14.3.2003, p. 23, and in particular point 3.2.2 of the decision.

(13) See footnote 8.