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SGEI Framework

 

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SGEI Framework

The SGEI Framework is to be utilised if compensation exceeds €15m per annum to undertakings operating a service outwith the field of social services.  The EC will assess SGEI funding for compatibility. An example currently operating in Scotland is the funding given to CalMac. Another example is NEST (National Employment Savings Trust) an occupational pension scheme for low to moderate earners which the UK notified in 2010.  The main features of the new SGEI Framework are:

  • A more precise methodology is given for calculating the amount of compensation allowable.
  • Member States must introduce efficiency incentives to encourage the entity providing the service to do so in the most efficient manner.
  • Any aid granted must comply with the relevant public procurement rules.
  • When there are multiple organisations providing an SGEI the compensation must be calculated in the same way to avoid discrimination.
  • Transparency- Member States funding an SGEI within the scope of the Framework must publish details on the internet.
  • As with the SGEI Decision, the EC will request a report every 2 years. The first report will be submitted by 30 June 2014.

 

The full text of the new SGEI Framework can be accessed here

 

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