EU gives green light to UK’s ‘fossil fuel subsidy scheme’

The European Commission has reapproved the UK’s subsidy scheme for the power sector after a court ruling brought it to a standstill last year.

Tempus Energy, a grid balancing company, had successfully argued at the EU’s General Court that the UK capacity market discriminated against companies providing demand management services in favour of gas, nuclear and coal power stations.

However, following an investigation into the UK’s scheme, the Commission has found that it complies with EU state aid rules. Officials found no evidence that it would “put demand response operators or any other capacity providers at a disadvantage” in bidding for capacity market payments, according to an announcement made yesterday.

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