25. 4. 90 Official Journal of the European Communities No L 105/1% COMMISSION DECISION - of 20 December 1989 ruling on a financial measure taken by Spain in respect of the coal industry during 1989 and a supplementary financial measure in respect of the coal industry in 1988 and 1987 (Only the Spanish text is authentic) (90/198/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steal Community, Having regard to Commission -Decision No- 2064/86/ ECSC of 30 June 1986, establishing Community rules for State aid to the coal industry (*), and in particular Article 10 “thereof, Whereas : I By letters of 22 September and -13 October 1988, the Spanish Government informed the Commission, pursuant to Article 9 (2) of Decision No 2064/86/ECSC, of the financial measures it intended to take during 1989 in order to give direct or indirect support to the coal indus- tries. The measures included compensatory payments to electri- city producers using Spanish coal produced by underta- kings that have negotiated contracts with the said electri- city producers under the NSCCT (new system of public contracts for coal used in power stations), a system to be financed by a compensation fund managed by Ofico (Electricity Compensation Office). By letters of 23 May, 26 September and ‘9 November 1989, at the Commission’s request, the Spanish Govern- ment also communicated further information concerning 1989. : In those letters, pursuant to the provisions of -Article 9 (3) of Decision No 2064/86/ECSC, the Spanish Government also notified 'the Commission of an increase in the compensatory -amounts that were to be paid to electricity - producers in respect of 1987 and 1988 under the new- public contracts system,-and provided further data on this measure. The amounts in question, financed by the compensation fund,-amount to : — Pta 12 625 million in 1989, — Pta 2782 million in addition to the sum already authorized in respect of 1988, () OJ No L 177, 1. 7. 1986, p. 1. — Pta 3370 million in addition to -the sum already authorized in respect of 1987. 11 The aim of the Ofico financial measure is to refund to the electricity generating companies any sums over and above the reference price which those companies have to pay . the coal mining undertakings to cover almost the full amount of the latter’s operating losses. The system applies to those mining undertakings that have concluded coal supply contracts with the electricity producers under the NSCCT system. The measure covers some 3 million tce (tonnes. of coal equivalent) of Spanish coal a year. This is a-measure linked-to coal sales which, even if not borne directly by public authority budgets, is nevertheless financed from -levies imposed ‘through a measure intro- duced by the State. It also- gives coal industry undertakings an economic advantage and therefore represents an- indirect aid to ‘this industry withinthe meaning of Article 1 (1) of Decision No 2064/86/ECSC. It must therefore be submitted for a Commission opinion pursuant to the provisions of Article 10 (2) of that Deci- siom. I In Decisions 87/454/ECSC (3 and 88/505/ECSC (), the Commission- authorized Ofico financial measures amoun- ting to Pta 8 400 million in 1987 and Pta 8 400 million for 1988. The Commission authorized this aid in view of the fact that the new system was intended to make the. industry more competitive-and that the precipitate closure of uneconomic -installations was likely to cause major social and regional problems. To this extent the measure was also calculated to attenuate the social and regional problems encountered in this industry. () OJ No L 241, 25. 8. 1987, p. 16. () OJ No L 274, 6. 10. 1988, p. 41.