The recent State aid judgment by the ECJ against the European Commission in the Tempus case was decided on procedural grounds, holding that the Commission should have consulted more fully before granting State aid approval in 2014. It did not challenge the nature of the Capacity Market mechanism itself. The judgment removed State aid approval for the Capacity Market, preventing the UK Government from making any further capacity payments under existing agreements until re-approval.
We are already working closely with the Commission to aid their investigation and seek timely State aid approval for the Capacity Market as soon as possible.
The Government and National Grid will ensure that market participants are kept updated.