EC Statement: State aid - Commission prohibits electricity price subsidies for Alcoa and orders partial recovery of aid already granted
( November 19, 2009, 15:30 GMT | Official Statement) -- Extract: After an in-depth investigation opened in July 2006, the European Commission has found that operating aid granted since 2006 by Italy to aluminium producer Alcoa was incompatible with EC Treaty state aid rules. The preferential electricity tariffs that Italy offered Alcoa for its aluminium smelters in Sardinia and Veneto from 2006 to 2010 only contribute to reducing Alcoa's operating costs and have no other justification.After an in-depth investigation opened in July 2006, the European Commission has found that operating aid granted since 2006 by Italy to aluminium producer Alcoa was incompatible with EC Treaty state aid rules. The preferential electricity tariffs that Italy offered Alcoa for its aluminium smelters in Sardinia and Veneto from 2006 to 2010 only contribute to reducing Alcoa's operating costs and have no other justification. They therefore give the company an unfair advantage over its competitors, which have to operate without such subsidies. The Commission has therefore ordered Italy to end the illegal subsidies and to recover part of the aid already paid from Alcoa....
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