Brussels, 26 March 2024
The European Commission has approved, under EU State aid rules, an amendment of the commitments submitted by Germany in Commission decisions SA.104353 and SA.105001 which allowed Germany to take ownership of the systemic energy utility SEFE and grant a €6.3 billion cash capital injection for the company’s recapitalisation.
In November 2022, the Commission approved the replacement of registered capital in SEFE in order to replace the Russian shareholder of SEFE with 100% State ownership by Germany. In December 2022, the Commission approved a cash capital injection of €6.3 billion to SEFE. The Commission found that without such support, SEFE risked ceasing operations which, given the crisis situation, could threaten the functioning of European energy markets. The Commission also found the aid to be necessary, appropriate and proportionate to avoid a sudden exit from the market of SEFE. In these decisions, Germany provided various commitments to balance the distortions to competition and trade from the capital injection. These commitments included notably divestments or wind-downs of business activities, limitations in sales volumes, and an acquisition ban for SEFE.
Germany has notified to the Commission a change to the acquisition ban, which will allow SEFE to take over the remaining shares in gas network operator WIGA GmbH & Co KG (which is already owned to almost 50% by SEFE). This amendment is counterbalanced by other additional commitments submitted by Germany, such as additional divestments and wind-downs, a decreased volume commitment and a third claw-back mechanism, which will allow to remedy the distortions of competition.
The Commission assessed the amended measure under EU State aid rules, in particular under Article 107(3)(b) of the Treaty on the Functioning of the European Union. The Commission found that the amended commitments do not alter the previous assessment of necessity, appropriateness and proportionality. Further, the Commission found that Germany’s additional commitments will ensure that the overall set of commitments remains equivalent in terms of remedying the distortions to competition and maintains the balance of the previous decision. On this basis, the Commission concluded that the measure is compatible with EU State aid rules.
More information will be available on the Commission’s competition’s website in the public case register under the case number SA.112489 once any confidentiality issues have been resolved.
Source – EU Commission