The European Commission opened an in-depth investigation on Thursday 21 February to determine whether or not the UK capacity market regime, which aims to safeguard security of electricity supply, is compatible with EU State aid rules.
This case dates back to July 2014, when the Commission considered that the scheme complied with EU law.
However, following an action for annulment brought by a private actor against the Commission's decision before the European General Court, the latter ruled in favour of the company last 15 November (see EUROPE 12139). It therefore annulled the Commission's decision, but only for procedural reasons.
The court did not rule on the merits of the case, but considered that the Commission should have opened an in-depth investigation in order to shed light on the case, which it had not done.
The institution then put in an appeal to the Court of Justice of the European Union against the judgment of the General Court, holding that it had acted in a proper manner. However, since this appeal does not suspend the effects of the judgment delivered by the Judges of the General Court, the Commission must comply with it until the Court of Justice has handed down its decision.
In order to comply with the procedure, it therefore opened an in-depth investigation into the matter. (Original version in French by Lucas Tripoteau)