Press Release: State aid: Commission orders Italy to suspend payment of aid to AEM Torino until it pays back previous illegal aid

The European Commission has endorsed under EC Treaty state aid rules a €16 million subsidy Italy intends to grant to AEM Torino. The aid is intended to cover costs incurred in the liberalisation process of the electricity sector (“stranded costs”). The Commission considers that the subsidy is in line with state aid rules. However, as AEM Torino had received in the past a significant amount of illegal and incompatible aid which it has not yet been reimbursed, the Commission has ordered Italy to suspend the payment of the €16 million of new aid until AEM Torino reimburses the previous illegal aid.