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UK’s Capacity Market cleared to resume by European Commission

The UK: still in Europe. Image: NASA.

The European Commission has approved Britain’s Capacity Market scheme following an in-depth investigation into its state aid compliance.

The mechanism was suspended last year following a landmark ruling, which found that the EC had erred on procedural grounds in granting state aid approval back in July 2014. 

The case was launched after UK energy technology company Tempus Energy challenged the approval, claiming that the inner workings of the mechanism inherently favoured some forms of generation over others. 

The General Court of the European Commission annulled the decision, effectively suspending the Capacity Market and preventing Britain from both running any further auctions and issuing any payments. 

This prompted an in-depth investigation from the EC, which today concluded that the scheme was clear to continue. 

The Commission said it received and analysed feedback and comments from 35 interested parties. 

The Commission said it did not find any evidence that the scheme would put any capacity providers at a disadvantage with respect to their participation in it, nor was it concluded that the mechanism distorted competition in the Single Market.

To read the full version of this story including industry reaction and analysis, visit Current±

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