The company that challenged the UK Government’s capacity market in the European courts has brought fresh legal action against ministers.

Technology firm Tempus Energy argued at the High Court in London that it was a legal duty to stop the scheme and recover the subsidies already paid out, while the European Commission mounts an investigation into state aid permission for the subsidy programme.

The European Court of Justice ruled in November that the commission hadn’t followed the proper procedures when it granted state aid approval in 2014.

Tempus also wants payments made under the capacity market auctions to be repaid.

Ministers ‘robustly defend’ challenge

Sara Bell, Chief Executive at Tempus, said: “We are astounded at the UK Government’s complete disregard for the law."

“Energy consumers should not be paying for these subsidies which have already been declared unlawful.”

A spokesman for the Department for Business, Energy & Industrial Strategy responded: “Working with the commission and industry we are confident in the steps we are taking to reinstate the capacity market."

“We will robustly defend this challenge by Tempus.”

> See Tempus's statement