On Thursday 24 October, the European Commission approved the UK’s Capacity Market scheme to safeguard security of electricity supply (see EUROPE 12199/17).
The investigation confirmed “that the scheme is necessary to guarantee security of electricity supply in Great Britain, is in line with EU energy policy objectives, and does not distort competition in the Single Market”.
The Commission analysed the comments made by 35 interested parties (energy producers, interconnector operators, professional associations, NGOs, etc.).
In the Commission’s view, the UK’s Capacity Market scheme covering the period 2014-2024 therefore complies with the 2014 Guidelines on State Aid for Environmental Protection and Energy. The United Kingdom has also committed to implementing certain improvements to the scheme (lowering the minimum capacity threshold for participating in auctions, allowing direct participation of foreign capacity, etc.)
Judicial saga. In July 2014, the Commission found the British Capacity Market scheme to be compatible with EU State aid rules. In November 2018, the EU General Court annulled this decision (Case T-793/14 - see EUROPE 12139/16). The Commission appealed against the General Court’s judgment (Case C-57/19 P), but this appeal did not suspend the effects of the ruling. In order to implement the judgment, the Commission opened an in-depth investigation in February 2019. (Original version in French by Lionel Changeur)