IMPLEMENTATION LEVEL

IFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 02 Dec 2015 | Removal date: open ended
Still in force

State loan

On 2 December 2015, the European Investment Bank agreed to provide 474.57 million EUR for the supply of smart gas and electricity meters to "a major energy supplier in the United Kingdom", as part of the European Fund for Strategic Investments (henceforth: EFSI). However, the EIB did not reveal which company exactly would receive this investment support.
According to the EFSI information sheet, the supplied meters will improve the supply of gas and electricity by the given supplier.
The financing provided by the EIB will mobilise investments of 1377.97 million EUR.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.
The measure does not specify any HS codes, as the investment support discriminates against other service providers, namely gas and electricity suppliers, rather than producers of electricity (2716) or gas (2711).

AFFECTED COUNTRIES

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