European Commission appeals against capacity market ruling

The European Commission has lodged an appeal against the court ruling that suspended the UK capacity market, reports Utility Week.

In November 2018 the General Court of the Court of Justice of the European Union found in favour of Tempus Energy, against the European Commission, annulling the Commission’s State aid approval for the UK capacity market.

The judgment suspends the state aid approval for, and therefore the legality of granting aid through, the capacity market.

The capacity market is currently in a ‘standstill period’ which prevents the UK Government from holding any capacity auctions, making any capacity payments under existing agreements, or undertaking any other action which could be seen as granting state aid, until the scheme can be approved again.

We will keep you posted on further developments to this story as they happen.