EU: Commission clears German subsidy scheme for power co-generation plants

The EU’s competition regulator has approved an electricity supply subsidy scheme aimed at boosting the generation capacity of Germany’s combined heat and power plants but will investigate whether a related cut in prices for big power consumers is anti-competitive.

The European Commission said the German Heat and Power Cogeneration Act 2016 which supports the construction of more energy-efficient district heating and cooling plants complies with the bloc’s state aid rules.

However, the Commission also said it would investigate whether reductions for heavy industrial users in the surcharges levied on consumers’ power bills to pay for that co-generation support gives them an unfair advantage in their own markets.

German Economy Minister Sigmar Gabriel said in a statement that support for co-generation plants, also known as combined heat and power plants, would be paid retroactively from Jan. 1, 2016. The support will increase the cost of electricity for households and small businesses.

“We have long and emphatically lobbied for our law and finally were able to clarify all open questions with the Commission,” he said.

Full Content: Reuters

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