L 366/62 Official Journal of the European Union 21.12.2006 COMMISSION DECISION of 8 November 2006 on State aid C 11/06 (ex N 127/05) which Italy is planning to implement for AEM Torino (notified under document number C(2006) 5276) (Only the Italian version is authentic) (Text with EEA relevance) (2006/941EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on interested parties to submit their comments pursuant to the provision(s) cited above (1), Whereas: PROCEDURE By letter dated 21 March 2005, Italy notified the Commission of the aid it intended to grant to AEM Torino for the stranded costs in the energy sector. The Commission asked supplementary information with letters dated 4 May 2005, 19 July 2005, and 14 November 2005. Italy provided the Commission with further information by letters dated 27 June 2005, 5 July 2005, 3 October 2005, 1t February 2006. By letter dated 4 April 2006, the Commission informed Italy that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. Italy did not reply to the letter of the Commission and provided no observations in the procedure. The Commission decision to initiate the procedure was published in the Official Journal of the European Union (%). The Commission called on interested parties to submit their comments. The Commission received no comments from AEM Torino. No other interested parties submitted observation either. DESCRIPTION OF THE MEASURE The measure under assessment concerns the reimburse- ment that Italy intends to grant to AEM Torino for the stranded costs in the energy sector. AEM Torino is one of the so-called ‘aziende municipalizzate and is active, in () OJ C 116, 17.5.2006, p. 2. () Cf. footnote 1. (10) (11) (12) ,.\,.\ SRS -z = particular, in the energy sector. The measure is based on a similar measure approved by the Commission on 1 Decem- ber 2004 (%). The amount of the aid is EUR 16,338 million, to be given in the form of grants. Italy indicated its intention to submit an annual report on the implementation of the measure. Italy indicated that the measure under assessment cannot be cumulated with any other aid. CUMULATION AND THE DEGGENDOREF JURISPRUDENCE On 5 June 2002, the Commission has taken a negative decision on State aid granted by Italy to public utilities owned by local public administrative bodies (hereinafter, ‘municipalizzate) in the form of tax exemptions and subsidised loans to public utilities with a majority public capital holding (%) (State aid C 27/99, ex NN 69/98). The Commission decision declared such non-notified schemes unlawful and incompatible and imposed to the Italian State to recover any possible amount disbursed under those schemes (). The recovery process has been very slow. Italy has adopted Law 18 April 2005, n. 62 whose article 27 provides for the recovery of the aid granted to the municipalizzate in application of the Commission decision. However, bene- ficiaries can be allowed to repay the aid in instalments, over a period of 24 months. Such provision has been enforced by a decision taken by the Agenzia delle Entrate on 1 June 2005. According to its own submissions in the pending Case T- 297/02 ACEA v Commission, AEM Torino has benefited from the aid schemes assessed in the Commission Decision 2003/193EC, both by benefiting from the tax exemptions in 1997, 1998 and 1999 and by receiving subsidised loans from the Cassa Depositi e Prestiti. Commission decision of 1 December 2004, on case N 490/00, in particular the part on the ‘stranded impianti’. OJ L 77, 24.3.2003, p. 21. Article 3 of the Commission decision stipulates that all necessary measures must be taken by Italy in order to recover from the beneficiaries the unlawful aid thus granted.