11.12.1999 Official Journal of the European Communities L 319/47 COMMISSION DECISION of 8 July 1999 concerning the Danish application for a transitional regime under Article 24 of Directive 96/92/EC of the European Parliament and of the Council concerning common rules for the internal market in electricity (notified under document number C(1999) 1551/8) (Only the Danish text is authentic) (1999/798/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity (1), and in particular Article 24 thereof, Having informed the Member States of the application submitted by Denmark, Whereas: I. FACTS 1. Procedure (1) By letter of 19 February 1998, the Danish Ministry of Environment and Energy (Miljo- og Energiministeriet) applied for a transitional regime pursuant to Article 24 of the Directive. (2) On 25 June 1998, a meeting between the Commission and representatives from the Danish Ministry of Environment and Energy was held in Brussels to discuss the application. The Ministery was asked to provide more detailed information. (3) By letter of 16 October 1998, the Ministry submitted this information. () OJ L 27, 30.1.1997, p. 20. (4) 2. Structure and development of the electricity sector in Denmark In 1997, there were 111 companies in the Danish electricity industry. 46 of the companies are directly owned and run by municipalities, 43 are organised as consumer owned cooperatives, nine are partnerships, 11 are private foundations and two are joint stock companies. The transmission network in Denmark is divided into two separate vertically integrated systems. Eltra (separate legal entity and separate management and governing board) operates a network which covers the western part of Denmark (Jutland and Funen) and is linked to the UCPTE net and Elkraft System (organised within Elkraft but has separate management) operates a network which covers the eastern part and is linked to the Nordel net. The distribution companies are responsible for the sale of electricity to the consumers, and for the planning, operation and maintenance of the low and medium-voltage grid. The generation of electricity is undertaken by eight companies which are owned by the distribution companies. The generation of electricity and the sale of electricity to the distribution companies are coordinated by Elsam (in the Eltra area) and by Elkraft. There are three electricity undertakings which are producers as well as distributors: Kebenhavns Belysningsvaesen (the municipality of Copenhagen), Ostkraft on the island of Bornholm, and the municipality of Randers. The electricity is mainly produced in combination with heat production. Coal is the predominant fuel in these plants; however, natural gas is growing in importance. Traditional power plants producing only electricity have been phased out in recent years. In addition, renewable energy sources such as biomass and wind power are becoming more important in electricity production. It is