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Icelandic Power Sale Contracts   ∙ EFTA Surveillance Authority’s Decisions Nos. 391/11/COL, 392/11/COL, 67/15/COL and 207/15/COL   ∙ Annotation by  Fiorenzo Bovenzi, Christian Lund and María Muñoz de Juan

Annotation on the EFTA Surveillance Authority’s Decisions Nos. 391/11/COL, 392/11/COL, 67/15/COL and 207/15/COL

Fiorenzo Bovenzi, Christian Lund, María Muñoz de Juan


In recent years, the EFTA Surveillance Authority has examined several power sale contracts concluded by the Icelandic state-owned electricity company Landsvirkjun with industrial customers, in order to exclude the presence of State aid. This article reviews the recent decisional practice of the Authority, with a focus on the application of the market-economy operator test, which aims at establishing that the contracts made commercial sense and properly reflected market conditions, thus excluding the existence of an advantage. The Authority’s assessment has taken into account the specific features of the Icelandic electricity market, such as its lack of interconnections, and the fact that there are no readily available benchmarks against which Landsvirkjun’s contracts can be compared.
Keywords: European Economic Area (EEA) Agreement, Notion of aid, State Resources, Advantage, Market-Economy Operator (MEO) Test.

Officials in the Competition and State Aid department of the EFTA Surveillance Authority. The views expressed in this paper are those of the authors and do not necessarily reflect the opinion of the Authority.

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