WRITTEN QUESTION No. 2112/98 by Graham WATSON to the Commission. East Timor
22. 2. 1999 EN Official Journal of the European Communities C 50/129 There is a danger that ENEL will use the profits guaranteed by the energy monopoly to finance a different business, which would blatantly conflict with national rules and Community directives. Is the Commission aware of this manoeuvre, and what does it intend to do about it? Answer given by Mr Van Miert on behalf of the Commission (16 September 1998) The Commission is aware of ENELís investments in the Wind consortium, which reflect a trend emerging in a number of Member States: companies with a monopoly in electricity generation are branching out into other sectors so as to offset potential loss of revenue › resulting from the gradual introduction of competition into the electricity market › with revenue from other sectors. Such practices are not contrary to Community law. None of the Community telecommunications directives require the Member States to prohibit companies with exclusive or special rights in sectors other than telecommunications from investing monopoly-derived funds in the telecommunications sector. They merely require such companies to present separate accounts for their activities as suppliers of voice telephony or networks and their other activities. This requirement has been met because Wind is legally separate from ENEL and has other shareholders. Financial and commercial relations between the two companies are therefore sufficiently transparent for the authorities to be able to intervene in the event of any infringement of competition rules. At all events, the national regulatory authorities responsible for the telecommunications and energy sectors and the antitrust authority can monitor the situation as appropriate, without prejudice to any action which the Commission may take if Community law is infringed. (1999/C 50/186) WRITTEN QUESTION E-2112/98 by Graham Watson (ELDR) to the Commission (10 July 1998) Subject: East Timor Further to its answer to parliamentary question (E-1050/98) (1) will the Commission outline the proposals under consideration for humanitarian aid and development to East Timor? (1) OJ C 323, 21. 10. 1998, p. 110. Answer given by Mr Marín on behalf of the Commission (3 September 1998) The health and education sectors are envisaged as possible sectors for intervention. The Commission is, however, not in a position to outline details of the proposals since they are subject to negotiation with the organisations concerned. The Commission carried out an evaluation mission in May 1998. The principal areas of possible intervention were identified as health, nutrition and water supply