Capacity Market Decision
On 14 November 2018, the General Court of the European Union found in favour of Tempus Energy, against the European Commission, essentially overruling the Commission’s decision to approve the aid scheme establishing a capacity market in the UK. The judgment suspends the state aid approval for – and therefore the legality of granting aid through – the Capacity Market.
What Does the Judgment Mean?
The ruling imposes a “standstill period on the Capacity Market”, which prevents the UK government from holding any capacity auctions, making any capacity payments under existing agreements or undertaking any other action that could be seen as granting state aid, until the scheme can be approved again. We will update this alert as further information becomes clear.
If you need advice on any issue arising out of this decision, please contact our Energy & Natural Resources team.