L 319/18 Official Journal of the European Communities 11.12.1999 COMMISSION DECISION of 8 July 1999 concerning the German 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) 1551/4) (Only the German text is authentic) (1999/794/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 (hereinafter ‘the Directive) (!), and in particular Article 24 thereof, Having informed the Member States of the German application, Whereas: I. FACTS 1. Procedure (1) By letter of 30 July 1997, the German Bundesministerium fiir Wirtschaft (Ministry of Economic Affairs) asked the Commission to comment on, among other issues, the introduction into the German ‘Gesetz zur Neuregelung des Energiewirtschaftsrechts’ (Energy Act), of a protection clause for lignite-based electricity production. (2) By letter of 22 September 1997, the Commission replied that a protection clause including a possible refusal of system access would be a derogation from the access right under the terms of Article 17 of the Directive and could not therefore be based on Article 8(4) of the Directive, but would need to be applied for in accordance with the procedure set out in Article 24 of the Directive (transitional regime). (3) By letter of 12 February 1998, the German Ministry of Economic Affairs applied for a transitional regime in accordance with Article 24 of the Directive in relation to the provisions of Article 4(3) (new Lander) of the ‘Gesetz () OJ L 27, 30.1.1997, p. 20. zur Neuregelung des Energiewirtschaftsrechts’, which was published in the Bundesgesetzblatt on 28 April 1998 (?) and entered into force on the following day. (4) On 14 July 1998, Commission representatives undertook a fact-finding mission to the Bundesministerium fiir Wirtschaft in Bonn. The Ministry confirmed that it regarded the application of 12 February 1998 as final and that, apart from the protection clause for lignite contained in the application, there were no other transitional regimes for which the Government would envisage support or aid schemes. The Commission requested  additional information concerning the development of the lignite sector in the new Ldander as well as on the contractual situation between the parties concerned, which is the basis of the commitments in accordance with Article 24(1) of the Directive. (5) By letter of 11 September 1998, the Ministry submitted this additional information. (6) Additionally, and in the agreement with the Bundesministerium fiir Wirtschaft, there was direct contact between the Commission and the company primarily concerned, Vereinigte Energiewerke AG (VEAG). VEAG set out its position in a letter to the Commission dated 28 January 1999. On 12 February 1999, a meeting between VEAG and the Commission took place in Brussels. By fax of 23 March 1999, VEAG submitted a report commissioned from chartered accountants evaluating the need for the lignite protection clause. 2. Structure and development of the electricity sector in the new Linder (7)  Electricity transmission in the new Lander is carried out by VEAG. VEAG is also the largest electricity producer in the new Ldnder, accounting for approximately 60% of total electricity production. VEAG produces 92% of its electricity generation on the basis of lignite. Electricity distribution is organised by 15 regional distribution companies (in which VEAG or its shareholders often () BGBL 1, p. 730.