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Risk for the production volume inconsistent with baseline output
Risk identification
Pursuant to the draft Guidelines ‘baseline output’, in tonnes per year, means the average production at the installation over the reference period 2005-2011 (baseline output) for installations operating every year from 2005 to 2011. If the installation did not operate for at least one year from 2005 to 2011, then the baseline output will be defined as yearly production until there are four years of operation on record, and afterwards it will be the average of the last three years of this period. The aid will be increased by 40 % if average production during the aid granting period increases to more than 40 % of baseline output. The aid will be reduced by 40 % if average production during the aid granting period decreases to less than 40 % of baseline output.
This provision generates the risk that real output of the facility will not reflect the baseline output characterisation specified in the draft Guidelines.
Also risks flowing from the 40 % threshold could be perceived – every change in production not exactly responding to the said threshold exposes the facility to the risk of being inadequately compensated through State aid scheme.
Risk parameterisation
To be determined taking into account possible variations in the output volume of the specific plant.
Possible measures for management for risk
Monitoring for the volume of the production in such a manner to avoid the situation where costs are not fully compensated.
The draft Guidelines may pose also other threats for the future beneficiaries of the aid (like, for instance rules on cumulation of the aid) thus the said legal measure should be the subject of thorough verification.