E.U. To Probe Spain's Electricity Sector

Law360, New York (January 25, 2007, 12:00 AM EST) -- Spain’s energy sector ran into trouble yet again on Thursday when the European Commission launched an investigation into whether the Spanish power industry benefited from artificially low electricity prices.

The E.C. will look into regulated tariffs that led to a €3.8 billion deficit in the Spanish electricity system in 2005. Consumers will pay for the deficit through a new charge on their bills over the next 14 years.

The tariffs may count as state aid to energy intensive large and medium-sized industries in Spain, which could’ve...
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