2005/145/EC: Commission Decision of 16 December 2003 on the State aid granted by France to EDF and the electricity and gas industries (notified under document number C(2003) 4637) (Text with EEA relevance)

The unlimited guarantee granted by France to Electricité de France (EDF) constitutes State aid that is incompatible with the common market and must be withdrawn by 1 January 2005.

The affiliation of the French pension scheme for the electricity and gas industries to the ordinary pension schemes does not constitute State aid within the meaning of Article 87(1) of the Treaty insofar as such affiliation is financially neutral for the enterprises, the transferee schemes and the State. The non-payment by enterprises in the electricity and gas industries of benefits corresponding to the specific rights acquired at the date of the reform by employees assigned to electricity and gas transport and distribution and the financing of those rights by a tariff-based contribution constitute State aid that is compatible with the common market pursuant to Article 87(3)(c) of the Treaty. The guarantee granted by France to the National Fund for the Electricity and Gas Industries in respect of those acquired specific rights does not constitute State aid within the meaning of Article 87(1) of the Treaty.

The non-payment by EDF, in 1997, of corporation tax on some of the provisions created free of tax for the renewal of the RAG, corresponding to FRF 14,119 billion in grantor rights reclassified as capital injections, constitutes State aid that is incompatible with the common market. The aid involved in the non-payment of corporation tax amounts to EUR 888,89 million.

France shall take all necessary measures to recover from EDF the aid referred to in Article 3 and unlawfully made available to it. Recovery shall be effected without delay and in accordance with the procedures of national law provided that they allow the immediate and effective execution of the decision. The aid to be recovered shall include interest from the date on which it was at the disposal of EDF until the date of its recovery. Interest shall be calculated on the basis of the reference rate used for calculating the grant-equivalent of regional aid, applied on a compound basis in accordance with the Commission communication on the interest rates to be applied when aid granted unlawfully is being recovered .

France shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it. Such information shall be communicated to the Commission with the aid of the form set out in the Annex.

This Decision is addressed to the French Republic.