(Case T-303/05)

State aid – Energy sector – Investment aid for the construction of a district heating system – Decision declaring the aid compatible with the common market – Obligation to repay first aid declared unlawful and incompatible with the common market – Concept of economic unit

1. Acts of the institutions – Statement of reasons – Obligation – Scope – Commission decision on State aid – Characterisation of adverse effect on competition and the effects on trade between Member States (Arts 87(1) EC and 253 EC) (see paras 42-45, 51)

4. State aid – Prohibition – Exceptions – Commission decision making authorisation for the payment of aid subject to prior repayment by the undertaking concerned of unlawful aid previously received (Arts 87(3)(c) EC and 88(2) EC) (see paras 165-167)

Re:

APPLICATION for annulment of Commission Decision 2006/598/EC of 16 March 2005 concerning State aid that Italy (Regione Lazio) intends to grant for the reduction of greenhouse gas emissions (OJ 2006 L 244, p. 8).

Operative part

The Court:

1.Dismisses the action;

2.Orders AceaElectrabel Produzione SpA to pay the costs, except those referred to in point 3 below;

3.Orders Electrabel to bear its own costs and to pay the costs incurred by the Commission as a result of its intervention.