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1096272900000 | Press Release

EnBW takes legal action in Luxemburg against German implementation of emission trading

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German allocation law distorts competition and offends European law

Karlsruhe. The EnBW Energie Baden-Württemberg AG brought today in due time legal action in the European court of first instance (EuG) in Luxemburg against the EU Commission. Object of the suit is the EU Commission's approval of the German allocation law, basing the regulations of the C02 certificates to the operators of the plants concerned. Thus the EnBW continues consequently its way against the implementations of the emission trade distorting the competition in Germany. Its reasons are that the German allocation law misses the common implementation of the European directives and favours national competitors of the EnBW by offending European regulations. In view of the EnBW the transmission rule included in the allocation law presents an illegal aid which offends both the EC-Treaty as well as the emission trading guidelines of the EU. The suit of the EnBW demands nullification of the EU Commission's decision to approve the German allocation law.

Already in June 2004, the EnBW had lodged an appeal against the German allocation law, because it feels discriminated, especially by the so-called transmission rule. This rule allows that companies, which replace an old, emission-intensive power plant by a new, low-emission power plant, transmit to the new plant the certificates entitled annually to the old plant and are allowed to sell profitably the surplus certificates for four years. Independent experts estimate the competitive loss caused by the planned law to the EnBW at approximately 1 billion Euro from 2005 to 2020. According to EnBW's conviction, which is shared by numerous experts, the transmission rule distorts trade conditions economically and has no ecologic effects, because it leads to extensive take-away effects. Furthermore the EnBW complains that the allocation law subsequentially discriminates nuclear power which should be excluded by the nuclear consensus. For example, the under-equipment of certificates because of the closure of the power plant Obrigheim will lead to a considerable discrimination of the EnBW. Not least as a consequence of the political pressure of the German Environment Department, the EU Commission had rejected the EnBW's complaint in July 2004.

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Corporate Communications
EnBW Energie Baden-Württemberg AG
Durlacher Allee 93
76131 Karlsruhe
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