Public Utilities and the European Union's 'Services of General Economic Interest': Feudal Origins of their Monopoly Powers

AutorLuis Aníbal Avilés
CargoAssociate Dean at the University of Puerto Rico Law School and Former President of the Governing Board of the Puerto Rico Electric Power Authority
Páginas77-91
PUBLIC UTILITIES AND THE EUROPEAN UNIONS “SERVICES OF
GENERAL ECONOMIC INTEREST: FEUDAL ORIGINS OF THEIR
MONOPOLY POWERS
LUIS ANÍBAL AVILÉS*
European Law affords special treatment to undertakings or firms that
provide services of general economic interest. Article 14 of the Treaty on the
Functioning of the European Union (hereinafter the “TFEU) states, in no
uncertain terms that:
Without prejudice to Article 4 of the Treaty on European Union or to
Articles 93, 106 and 107 of this Treaty, and given the place occupied
by services of general economic interest in the shared values of the
Union as well as their role in promoting social and territorial cohesion,
the Union and the Member States, each within their respective
powers and within the scope of application of the Treaties, shall take
care that such services operate on the basis of principles and
conditions, particularly ec onomic and financial conditions, which
enable them to fulfill their missions. The European Parliament and
the Council, acting by means of regulations in accordance with the
ordinary legislative procedure, shall establish these principles and
set these conditions without prejudice to the competence of Member
States, in compliance with the Treaties, to provide, to commission
and to fund such services.
1
The Treaty on the European Union
2
(hereinafter the TEU) and the
TFEU do not define the term services of general economic interest. Apart from
Article 14, only TFEU Article 106 (1) mentions “public undertakings and
undertakings to which Member States grant special or exclusive rights”
3
and
TFEU Article 106(2) speaks of “undertakings entrusted with the operation of
services of general economic interest or having the character of a revenue-
*Associate Dean at the Univ ersity of Puerto Rico Law School a nd Former President of the
Governing Board of the Puerto Rico Electric Power Authority. I greatly appreciate the
comments on this version of the paper from my colleagues José Julián Álvarez González and
David M. Helfeld and th e edits suggested by my stud ent assistant Héctor Sueiro Álvarez. Of
course, any errors and omissions are my sole responsibility.
1
Consolidated V ersion of the Treaty on the Functioning of the European Un ion, art. 14, Oct.
26, 2012, 2012 O.J. (C 326) 49, 54 [hereinafter TFEU] (emphasis added).
2
Consolidated Version of the Treaty of the European Union, Oct. 26, 2012, 2012 O.J (C 326)
13 [hereinafter TEU].
3
Id., art. 106 (1).

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