Analysis of state budget execution by mission and program - Fiscal year 2012. Trade account Renewal of hydroelectric concessions - May 2013

Trade account no. 914 'Renewal of hydroelectric concessions' was created by the 2012 Finance Act. 2012 is therefore its first fiscal year. This account records transactions relating to the renewal of hydroelectric concessions; it organizes a closed financial circuit that is a priori balanced over time, with expenditure financed, sometimes with a slight time lag, by equivalent income. It should be noted that the competitive renewal procedure for hydroelectric concessions will eventually generate permanent budgetary income in the form of a royalty paid by the concessionaires. In 2012, trade account no. 914 only spent Euros 0.94m, or 17% of the forecast. Revenues were nil, whereas the initial Finance Act forecast 0.60 MEuros. The account did not immediately re-invoice 0.04 MEuros of appraisal expenses to outgoing concessionaires, even though it had the possibility of doing so, and the State does not have to bear them despite their small amount. The budget planning was ambitious, and the ups and downs of the competitive bidding process resulted in expenditure and revenue well below forecasts. The overdraft authorization was respected, but its low level was potentially risky, in a context where a delay in expenditure would have further lengthened the procedure. The Court's main recommendations are as follows: 1 - use a solution other than the trade account to track financial movements linked to the renewal of hydroelectric concessions, such as integration into the general budget or use of a special allocation account; 2 - Immediately bill outgoing concession-holders for the costs of analyzing end-of-concession files, as required by law; 3 - set realistic expenditure and revenue forecasts for the management department, given the delays and length of the procedure