EU tells Alcoa to repay Italy state aid

BRUSSELS — EU regulators on Thursday ordered US aluminium giant Alcoa to repay Italy for state aid received since 2006 in the form of subsidised electricity prices for two smelters. The European Commission did not detail the amount to be returned. "Price subsidies that result in artificially low energy prices for selected companies waste taxpayers' money and distort competition in the single market," EU Competition Commissioner Neelie Kroes said in a statement. "Alcoa will have to pay back most of the illegal subsidies," she said. In the United States, Alcoa announced it would appeal the decision and temporarily idle production at its two aluminum smelters, located in Fusina and Portovesme, Italy. "The curtailment is a result of uncertainty in obtaining future power supply for the smelters at competitive rates and the financial impact of today's European Commission decision," the US firm said. Alcoa said the tariff was in place for more than 10 years in Italy and approved by the EC in 1995, the year that Alcoa purchased the operations.