6. 7. 91 Official Journal of the European Communities No L 178/31 COMMISSION COMMISSION DECISION of 30 April 1991 relating to a proceeding under Article 85 of the EEC Treaty (IV/33.473 — Scottish Nuclear, Nuclear Energy Agreement) (Only the English text is authentic) (91/329/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 February 1962, First Regulation implementing Articles 85 and 86 of the Treaty ('), as last amended by the Act of Accession of Spain and Portugal, and in particular Articles 6 and 8 thereof, Having regard to the notification dated 27 February 1990 by Scottish Nuclear Limited, concerning the Nuclear Energy Agreement drawn up in the context of the reorganization of the electricity industry in Scotland, Having regard to the summary of the notification (?) published pursuant to Article 19 (3) of Regulation No 17, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas : I. FACTS A. The notification (1)  On 27 February 1990, Scottish Nuclear Limited notified to the Commission, pursuant to Article 4 of Regulation No 17, an agreement between itself and Scottish Power plc and Scottish Hydro-Electric plc. (2)‘ Scottish Nuclear Limited has applied for negative clearance or, failing that, exemption pursuant to Article 85 (3) of the EEC Treaty. B. General framework (3)  Until 31 March 1990 Scotland’s electricity require- ments were met by two publicly-owned corpora- tions, North of Scotland Hydro-Electric Board and () OJ No 13, 21. 2. 1962, p. 204/62. () OJ No 'C 245, 29. 9. 1990, p. 11. @ ©) © South of Scotland Electricity Board, which generated, transmitted and distributed electricity in their assigned geographical areas, covering the north and south of Scotland respectively. In reorganizing the industry in advance of privati- zation, the United Kingdom Government decided to maintain vertical integration in the Scottish elec- tricity industry, ‘'since it is better suited for the supply of electricity to sparsely-populated areas which are characteristic of many areas of Scotland. The United Kingdom Government has therefore decided to create two separate, independent and competing vertically-integrated electricity utility companies from the two Boards. Scottish Power plc (‘Scottish Power’) has taken over the non-nuclear business of the South of Scotland Electricity Board and Scottish Hydro-Electric plc (‘Hydro-Electric’) the business of the North of Scotland Hydro- Electric Board. Both companies will be privatized. The Scottish nuclear stations at Hunterston and Torness which previously were owned by the South of Scotland Electricity Board are now owned and operated by a separately established generating company, Scottish Nuclear Ltd (‘Scottish Nuclear’) which will remain in public ownership. Scottish Nuclear does not supply direct to customers, selling "all its output under contract to Scottish Power and Hydro-Electric. The Electricity Act 1989 and subordinate legisla- tion made thereunder set out the framework for the new regulatory system for the electricity industry in Scotland. Under this Act any undertaking generat- ing, transmitting or supplying electricity in Scotland needs a licence issued by the Secretary of State for Scotland or the Director-General for Elec- tricity Supply, unless exempted by order under the Act. Scottish Power and Hydro-Electric are each by licence obliged and entitled to transmit and supply electricity to customers within their authorized areas. These areas are essentially the same as those of the former Boards. Both utilities are entitled to generate electricity themselves. There is no restric-