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The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules

Year 2021, Volume: 79 Issue: 3, 1029 - 1065, 21.09.2021

Abstract

State aid to the nuclear energy sector has increased significantly within the last decade and in parallel to this increase, controversy about giving state aid to nuclear energy has soared. In addition to this controversy, the existence of a special treaty for nuclear energy, called the Euratom Treaty, exclusion of nuclear energy from the ‘Guidelines on State aid for environmental protection and energy 2014-2020’ and very intrinsic risks and market failures related to the nuclear energy sector distinguish nuclear state aid cases from other energy state aid cases. Considering the scarcity of research dealing with increasing nuclear state aid cases in detail, this research intended to focus on the relationship between state aid and nuclear energy and analyse prominent nuclear state aid cases. During the research, prominent nuclear state aid cases which have shaped the case law and related legislations were analysed. It could be briefly concluded that nuclear state aid cases will likely continue to increase as energy markets become more competitive. But it is very clear that intrinsic risks of nuclear energy and related market failures stemming from imperfect market conditions are keenly appreciated by the European Commission and the European Courts, and nuclear cases are treated more leniently in line with these conditions. This sends a very clear message that the lenient approach of the Commission and the Courts toward the nuclear state aid cases will remain as long as market failures and the Euratom Treaty exist and in this regard, the absence of guidelines for nuclear energy, while it seems like a disadvantage, will ensure the needed flexibility of the Commission when making its state aid assessment in nuclear state aid cases.

References

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Devlet Yardımları ve Nükleer Enerji İlişkisi ve Avrupa Birliği Devlet Yardımı Kuralları Bakımından Nükleer Enerji Devlet Yardımı Davalarının Hukuksal İncelemesi

Year 2021, Volume: 79 Issue: 3, 1029 - 1065, 21.09.2021

Abstract

Avrupa Birliği rekabet hukuku, diğer fonksiyonlarının yanında, “Ortak Pazar” oluşturmayı hedefler ve bu pazarda özel teşebbüsler yahut üye devletler eliyle oluşabilecek saptırmaları engellemeye çalışır. Devletlerin yapabileceği saptırmalar ise “Devlet Yardımı Kuralları” marifetiyle kontrol altına alınmaya çalışılır. Bu bakımdan Avrupa Birliği içerisinde geliştirilen devlet yardımları kontrol sistemi benzeri neredeyse olmayan ve gelişmiş bir sistemdir. Avrupa Komisyonu tarafından yayınlanan son devlet yardımı tablosuna göre üye devletlerin devlet yardımı harcamaları 2013 yılından bu yana artmaktadır. Devlet yardımı harcamaları arasında ise enerji sektörü en fazla yardım alanlar sektör konumundadır. Ancak devlet yardımı kuralları açısından nükleer enerjiye yapılan devlet yardımları diğer enerji kaynaklarına yapılan devlet yardımlarından farklılık arz etmekte ve çeşitli sebeplerden dolayı hususi inceleme gerektirmektedir. Literatürde bugüne değin bazı önemli nükleer enerji devlet yardımları tek tek ele alınmış yahut nükleer enerji konusu devlet yardımını konu alan önemli akademik çalışmalarda yeterince detaya inilmeden yalnızca bir alt bölüm olarak zikredilmiştir. Bu durum dikkate alınarak çalışmamızda nükleer enerji sektörü ve devlet yardımı ilişkisi ele alınarak ve nükleer enerji devlet yardımlarının içtihad hukukunda nasıl değerlendirildiği ve içtihad hukukunun müdahil taraflara berrak bir manzara arz edip etmediği incelenmiştir. Yapılan tüm incelemeler ışığında nükleer enerji sektörüne uygulanacak devlet yardımı kuralları konusunun büyük ölçüde yerleştiği görülmektedir. Bu kapsamda enerji piyasaları daha fazla rekabetçi hale geldikçe nükleer enerji devlet yardımı davalarının da artış gösterebileceği beklenebilir. Ancak Avrupa Komisyonu ve Mahkemeler, nükleer enerji özelinde oluşan riskleri ve buna bağlı olarak gelişen piyasa aksaklıklarını dikkate alarak nükleer devlet yardımı davalarını daha esnek olarak ele almaktadır. Nükleer enerjiye özgü riskler, piyasa aksaklıkları ve en temelde Euratom Anlaşması yürürlükte olduğu müddetçe bu esnek yaklaşımın devam edeceği açıkça görülmektedir. Bu konuda bir kılavuzun olmayışı ilk bakışta bir dezavantaj olarak görülse de, bu durum Avrupa Komisyonu’na gelecekte nükleer enerjiye yapılacak devlet yardımlarını incelerken gerekli esnekliği sağlamada en önemli faktör olmaya devam edecektir.

References

  • Case C-124/10 P. European Commission v Électricité de France (EDF) [2012] ECLI:EU:C: 2012:318.
  • Case T-356/15 Republic of Austria v European Commission [2018] ECLI:EU: T: 2018:439
  • Case 30/59 De Gezamenlijke Steenkolenmijnen in Limburg v High Authority of the European Coal and Steel Community [1961] ECR 1
  • Case C-83/98 P French Republic v Ladbroke Racing Ltd and Commission of the European Communities [2000] EU:C:2000: 248
  • Case 173-73 Italian Republic v Commission of the European Communities [1974] ECR 709
  • Case C-379/98 Preussen Elektra AG v Schhleswag AG [2001] ECR I-2159
  • Case C-482/99 French Republic v Commission of the European Communities [2002] ECR 2002 I-04397
  • Case T-358/94 Compagnie Nationale Air France v Commission of the European Communities [1996] ECR II-02109
  • Case C-241/94 French Republic v Commission of the European Communities [1996] ECR I-04551
  • Case C-487/06 P British Aggregates Association v Commission of the European Communities and United Kingdom [2008] ECR I-10515
  • Joined Cases C-78/08 to C-80/08 Ministero dell’Economia e delle Finanze and Others v Paint Graphos Soc. coop. arl and Others [2011] ECR I-07611
  • Case C-88/03 Portuguese Republic v Commission of the European Communities [2006] ECR I-07115 C-39/94 Syndicat français de l’Express international (SFEI) and others v La Poste and others [1996] ECR I-3547
  • Case T-288/97 Regione Friuli Venezia Giulia v Commission of the European Communities [2001] ECR II-01169
  • Cases 730/79 Philip Morris Holland BV v Commission of the European Communities [1980] ECR-02671
  • Joined cases T-447/93, T-448/93 and T-449/93 Associazione Italiana Tecnico Economica del Cemento and British Cement Association and Blue Circle Industries plc and Castle Cement Ltd and The Rugby Goup plc and Titan Cement Company SA v Commission of the European Communities [1995] II-01971
  • Case T-214/95 Het Vlaamse Gewest (Flemish Region) v Commission of the European Communities [1998] II-00717
  • Case C-351/98 Kingdom of Spain v Commission of the European Communities [2002] I-08031
  • Case T-101/18 Action brought on 21 February 2018 — Austria v Commission [2018] OJ C 152
  • Case T-92/02 Stadtwerke Schwäbisch Hall GmbH, Stadtwerke Tübingen GmbH and Stadtwerke Uelzen GmbH v Commission of the European Communities [2006] ECLI:EU:T:2006:26
  • Case C-176/06 P Stadtwerke Schwäbisch Hall GmbH, Stadtwerke Tübingen GmbH and Stadtwerke Uelzen GmbH v Commission of the European Communities [2007] ECLI:EU:C:2007:730
  • Case T-156/04 Électricité de France (EDF) v European Commission [2009] ECR II-04503
  • Case T-196/04 Ryanair Ltd v Commission of the European Communities [2008] ECR II-03643
  • Case T-747/15 Électricité de France (EDF) v European Commission [2018] ECLI:EU: T: 2018:6
  • Case C-124/10 P European Commission v Électricité de France (EDF) [2011] ECR 2012 -00000, Opinion of Mr Advocate General Mazák
  • Commission Decision (EU) 2016/154 of 22 July 2015 on State aid SA.13869 (C 68/2002) (ex NN 80/2002) — reclassification as capital of the tax-exempt accounting provisions for the renewal of the high voltage transmission network (RAG) implemented by France in favour of EDF (notified under document C(2015) 4959) [2015] OJ L 34
  • Commission Decision (EU) 2017/2112 of 6 March 2017 on the measure/aid scheme/State aid SA.38454 (C/2017/1486) [2017] OJ L 317
  • 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) [2005] OJ L 49
  • Germany Reserves for nuclear power station waste management and decommissioning – State aid NN 137/01 [2001] OJ C 77/27
  • State Aid NN 101/2002 – United Kingdom Rescue aid to British Energy plc (C (2002)4480) [2002]
  • Support to Hinkley Point C Nuclear Power Station (2014/C 69/06) Commission Decision SA.34947 [2014] OJ C/69
  • Commission Decision of 4 April 2006 on the State Aid which the United Kingdom is planning to implement for the establishment of the Nuclear Decommissioning Authority (C(2006) 650) [2006] OJ L 268
  • Commission decision of 22 September 2004 on the State aid which the United Kingdom is planning to implement for British Energy plc (C(2004)3474) [2004] OJ L 142
  • Consolidated version of the Treaty on the Functioning of the European Union [2012] OJ C 326
  • Consolidated version of the Treaty establishing the European Atomic Energy Community [2012] OJ C 327
  • Commission Notice on the notion of State aid as referred to in Article 107(1) of the Treaty on the Functioning of the European Union [2016] OJ C 262
  • Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid Text with EEA relevance [2013] OJ L 352
  • Communication from the Commission — Guidelines on State aid for environmental protection and energy 2014-2020 [2014] OJ C 200/01 (Guideline for environmental protection and energy 2014-2020)
  • Guidelines on regional State aid for 2014-2020 Text with EEA relevance [2013] OJ C 209
  • Communication from the Commission on the application of the European Union State aid rules to compensation granted for the provision of services of general economic interest Text with EEA relevance [2012] OJ C 8/02 SGEI Communication
  • 2012/21/EU: Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (notified under document C(2011) 9380) Text with EEA relevance [2011] OJ L 7
  • Dinleyici / The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid... 1063
  • Communication from the Commission — European Union framework for State aid in the form of public service compensation (2011) Text with EEA relevance [2012] OJ C 8/03
  • Communication from the Commission — Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty [2014] OJ C 249
  • Commission Communication relating to the methodology for analysing State aid linked to stranded costs [1997] OJ L 27
  • Commission Notice on the application of the State aid rules to measures relating to direct business taxation [1998] OJ C 384
  • Anchustegui H I and Bergqvist C, ‘The role of State aid law in energy’ in Tina Hunters and others (eds), Handbook of Energy Law (Routledge 2020)
  • Bacon K, European Union Law of State Aid (3rd edn, Oxford University Press 2017)
  • Bartosch A, ‘The Concept of Selectivity’ in Erika Szyszczak (ed), Research Handbook on European State Aid Law (Edward Elgar 2011)
  • Biondi A and Righini E, ‘An Evolutionary Theory of State Aid Control’ in Damian Chalmers and
  • Anthony Arnull (eds), The Oxford Handbook of European Union Law (Oxford University Press 2015)
  • Biondi A and Stefan O, ‘The Notice on the Notion of State Aid: Every Light Has Its Shadow’ in Bruno Nascimbene and Alessia Di Pascale (eds), The Modernisation of State Aid for Economic and Social Development (Studies in European Economic Law and Regulation 14, Springer 2018)
  • Caoimh O A and Sauter W, ‘Criterion of Advantage’ in Herwig C H Hofmann and Claire Micheau (eds), State Aid Law of the European Union (Oxford University Press 2016)
  • Graham C, EU and UK Competition Law (2nd edn, Pearson 2010)
  • Hancher L and Klasse M, ‘Aid to Nuclear and Coal’ in in Leigh Hancher and others (eds), State Aid and the Energy Sector (Bloomsbury 2018)
  • Hancher L and others, EU State Aids (5th edn, Sweet & Maxwell 2016)
  • Hancher L and Salerno F, ‘Coal and Nuclear Aid’ in Christopher Jones (ed), EU Energy Law, Volume II: Competition Law and Energy Markets (5th edn, Claeys & Casteels 2019)
  • López P J J, The Concept of State Aid Under EU Law: From internal market to competition and beyond (Oxford University Press 2015)
  • Nykiel-Mateo A and Wiemann J, ‘Selectivity’ in Nicola Pesaresi and others (eds), EU Competition Law (Volume 4 Book 1, 2nd edn, Claeys Casteels 2016)
  • Orzan F M, ‘De Jure Compatible Aid under Article 107(2) TFEU in Herwig C H Hofmann and Claire Micheau (eds), State Aid Law of the European Union (Oxford University Press 2016)
  • Padilla J and Haegler U, ‘Compensation for SGEI: An Economist’s Look at the Altmark Test and the Community Framework’ in Jacques Derenne and Massimo Merola (eds), Economic Analysis of State Aid Rules- Contributions and Limits- (Lexxion 2007)
  • Petersen F C, Award of Public Contracts as a Means to Conferring State Aid: A Legal Analysis of the Interface Between Public Procurement Law and State Aid Law (PhD series Number 10.2018, Copenhagen Business School 2018)
  • Schoning F and Ziegler C, ‘What is State Aid?’ in Leigh Hancher and others (eds), State Aid and the Energy Sector (Bloomsbury 2018)
  • Slot J P, ‘EU State Aids Law’ in Dennis Patterson and Anna Södersten (eds), A Companion to European Union Law and International Law (Wiley 2016)
  • Szyszczak E, ‘Criterion of State Origin’ in Herwig C H Hofmann and Claire Micheau (eds), State Aid Law of the European Union (Oxford University Press 2016)
  • Thomas S, The Economics of Nuclear Power: An Update (Publication Series on Economy, Heinrich-Böll-Stiftung 2010)
  • Whish R and Bailey D, Competition Law (8th edn, Oxford University Press 2015)
  • Bacon K, ‘State Aids and General Measures’ (1997) 17(1) Yearbook of European Law 269
  • Biondi A, ‘Some Reflections on the Notion of “State Resources” in European Community State Aid Law’ (2006) 30 Fordham Int’l L.J. 1426
  • Bouchagiar A, ‘The Binding Effects of Guidelines on the Compatibility of State Aid: How Hard is the Commission’s Soft Law?’ (2017) 8(3) Journal of European Competition Law & Practice 157
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There are 88 citations in total.

Details

Primary Language English
Subjects Law in Context
Journal Section Research Articles
Authors

Ahmet Sefa Dinleyici This is me 0000-0002-6538-4258

Publication Date September 21, 2021
Published in Issue Year 2021 Volume: 79 Issue: 3

Cite

APA Dinleyici, A. S. (2021). The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules. İstanbul Hukuk Mecmuası, 79(3), 1029-1065.
AMA Dinleyici AS. The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules. İstanbul Hukuk Mecmuası. September 2021;79(3):1029-1065.
Chicago Dinleyici, Ahmet Sefa. “The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules”. İstanbul Hukuk Mecmuası 79, no. 3 (September 2021): 1029-65.
EndNote Dinleyici AS (September 1, 2021) The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules. İstanbul Hukuk Mecmuası 79 3 1029–1065.
IEEE A. S. Dinleyici, “The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules”, İstanbul Hukuk Mecmuası, vol. 79, no. 3, pp. 1029–1065, 2021.
ISNAD Dinleyici, Ahmet Sefa. “The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules”. İstanbul Hukuk Mecmuası 79/3 (September 2021), 1029-1065.
JAMA Dinleyici AS. The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules. İstanbul Hukuk Mecmuası. 2021;79:1029–1065.
MLA Dinleyici, Ahmet Sefa. “The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules”. İstanbul Hukuk Mecmuası, vol. 79, no. 3, 2021, pp. 1029-65.
Vancouver Dinleyici AS. The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules. İstanbul Hukuk Mecmuası. 2021;79(3):1029-65.