Brussels, 29/04/2015 (Agence Europe) - On 29 April, the European Commission announced that it has opened a state aid investigation into national measures to ensure that adequate capacity to produce electricity is available at all times to avoid black-outs (“capacity mechanisms”). The investigation will gather information on capacity mechanisms in a representative sample of member states, viz. Germany, Belgium, Croatia, Denmark, Spain, France, Italy, Ireland, Poland, Portugal and Sweden, to examine whether they ensure sufficient electricity supply without distorting competition.
Initially, the European Commission's investigation, the first to be carried out under the EU state aid rules, will collect information from the sample of member states that have introduced capacity mechanisms, but it may decide to extend the investigation to all member states at a later date if the sample results suggest this would be useful.
The Commission's investigation will collect information in order to verify whether the mechanisms ensure sufficient electricity can always be provided without distorting competition or trade within the Single Market. The Commission explains that more and more member states are introducing such mechanisms in order to encourage investment in electric power stations and to encourage power plants to continue to supply sufficient quantities of power to meet the demand for electricity. It recognises that state aid may sometimes be justified here and in its 2014 state aid guidelines on energy and protection of the environment, it laid down criteria for deciding whether such aid complies with the EU rules.
“This sector investigation sends a clear signal to Member States to respect EU state aid rules when implementing capacity mechanisms, and contributes to the Commission's goal to build a true Energy Union in Europe,” explained Competition Commissioner Margrethe Vestager.
The Commission says that it is for the member states to ensure that the mechanisms are designed in such a way as to not distort competition within the Single Market, in other words to ensure that they do not unduly encourage some producers or types of technology or create obstacles to the provision of electricity from one member state to another. (Elodie Lamer)