The Informer

The European Commission (EC) has lodged an appeal over the court ruling which has seen the UK’s Capacity Market suspended since November.

The EC is appealing against the European Court of Justice’s ruling that it failed to examine the UK's capacity market in enough detail before approving it under EU state aid rules.

Appeals to the court can typically take up to a year to be held.

Energy UK’s chief executive, Lawrence Slade, voiced support for the EC’s decision to challenge the ruling.

“The Capacity Market has increasingly been supporting newer capacity providers - and as a competitive, technology neutral process it can’t be characterised as unduly favouring any particular source. At the same time, we do want to see it give even more of an opportunity to newer technologies – including renewables – in future so it can continue to support the energy transition even more effectively,” he said.

‘Projects in jeopardy’

“The best way to do that is to reform the Capacity Market rules - not upturn it overnight, which has put new and existing projects - across all technologies - in jeopardy, damaged investor confidence and threatened long-term security of supply."

But in a blog posting on its website Tempus Energy, the company which took the UK Government to court over the mechanism, described the appeal as “absurd.”

“While this appeal will not delay the necessary investigation, which is almost guaranteed to fail against what was a damning judgment - the true reason behind this absurd appeal from the European Commission is to reinstate their approval and give investors confidence that the fossil fuel subsidy contracts are safe. To do this they are wasting further resources on this charade - the resources on their part are ironically supplied by European taxpayers’ money."

“We need to reveal this underhand and dishonest tactic for what it is, because such investments are anticompetitive, bad for the planet and human health.”

> Read EnergyUK's statement