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State aid rules regarding carbon leakage sectors adopted - more flexibility for production planning - Page 2
Friday, 25 May 2012 19:33

 

The definition for the baseline electricity consumption


Similarly, beneath are shown the differences in the definitions of the baseline electricity consumption in the previous draft Guidelines (1) and in the final Guidelines (2) - the relevant passage underlined:

 

(1) ‘baseline electricity consumption’, in MWh, means the average electricity consumption at the installation over the reference period 2005-2011 (baseline electricity consumption) for installations operating every year from 2005 to 2011. If the installation did not operate for at least one year from 2005 to 2011, the baseline electricity consumption will be defined as yearly electricity consumption until there are four years of operation on record, and afterwards it will be defined as the average of the last three years for which operation has been recorded. The aid will be increased by 40 % if average production during the aid granting period increases to more than 40 % of baseline output. The aid will be reduced by 40 % if average production during the aid granting period decreases to less than 40 % of baseline output;

 

(2) ‘baseline electricity consumption’, in MWh, means the average electricity consumption at the installation (including electricity consumption for the production of out-sourced products eligible for aid) over the reference period 2005-2011 (baseline electricity consumption) for installations operating every year from 2005 to 2011. A given calendar year (e.g. 2009) may be excluded from that 7-year reference period. If the installation did not operate for at least one year from 2005 to 2011, the baseline electricity consumption will be defined as yearly electricity consumption until there are four years of operation on record, and afterwards it will be defined as the average of the preceding three years for which operation has been recorded. If, over the aid granting period, an installation significantly extends its production capacity, the baseline electricity consumption can be increased in proportion to this capacity extension. If an installation reduces its production level in a given calendar year by 50% to 75% compared to the baseline output, the installation will only receive half of the aid amount corresponding to the baseline electricity consumption. If an installation reduces its production level in a given calendar year by 75% to 90% compared to the baseline output, the installation will only receive 25% of the aid amount corresponding to the baseline electricity consumption. If an installation reduces its production level in a given calendar year by 90% or more compared to the baseline output, the installation will receive no aid.

 

Fall-back electricity consumption efficiency benchmark

 

Fall-back electricity consumption efficiency benchmark is applied in the Guidelines where electricity consumption efficiency benchmarks listed in Annex III to the Guidelines are not applicable to the products manufactured by the beneficiary (in the said situation also baseline output parameter is replaced with baseline electricity consumption).

 

In the previous draft Guidelines the fall-back electricity consumption benchmark was set at the arbitrary level 0.7 which generated risk for industry.  The final text of the Guidelines removed the 0.7 level indication and introduced the provision that the fall-back benchmark will be determined via a Commission decision together with the electricity consumption efficiency benchmarks.

 

 



 

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