Electricity subsidies ‘in doubt’ across EU after ruling

The future of electricity capacity mechanisms across Europe have been put into question after an EU court ruling led to the suspension of the UK’s €6.3bn security of supply energy auction

The future of electricity capacity mechanisms across Europe have been put into question after an EU court ruling led to the suspension of the UK’s €6.3bn security of supply energy auction, campaigners have said.

The General Court of the EU on Thursday annulled the European Commission’s decision not to investigate or object to the subsidy scheme, suspending the market responsible for “keeping the lights on” in the UK.

The case was brought by flexibility services provider Tempus Energy, which successfully argued the capacity market discriminates against energy consumers who want to deliver energy demand services to the grid, in favour of gas, nuclear and coal power stations.

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