The European Commission has concluded that operating aid worth around EUR 80 million granted by Italy in the form of a preferential electricity tariff is incompatible with the Single Market and must be recovered from the beneficiaries. The aid, which was established in 1962 to compensate for the expropriation of a hydroelectric power plant, was granted to the manufacturing plants of ThyssenKrupp (steel), Cementir (cement) and Terni Nuova Industrie Chimiche (chemicals). Compensation granted by a State to a company in the context of expropriation does not normally constitute State aid. However, the Commission’s assessment shows that further extension of the aid until 2010 cannot be considered compensatory. The Commission therefore concluded that the aid was actually operating aid.