Energy: Government Assistance:Written question - 195571

Q
Asked by Ian Murray
(Edinburgh South)
[N]
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Named Day

'Named day' questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.

Asked on: 26 November 2018
Department for Business, Energy and Industrial Strategy
Energy: Government Assistance
Commons
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the recent decision by the European Court of Justice on state aid clearance for the capacity market, whether energy company payments arising from arrangements made and to be made within the five-year period previously approved by the European Commission will be stopped.
A
Answered by: Claire Perry
Answered on: 04 December 2018

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.

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