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EU: Regulators to probe utilities’ power reserve

By  |  April 29, 2015

European Union regulators opened an extensive investigation on Wednesday into the way European governments subsidise utilities to insure against blackouts to check that such support schemes do not breach state aid rules.

Capacity mechanisms are used in some EU countries such as Britain and France to fund electricity generation that may not be cost-effective but is needed to guarantee supply during peak demand.

The European Commission said it would ask Belgium, Croatia, Denmark, France, Germany, Ireland, Italy, Poland, Portugal, Spain and Sweden for information on existing schemes or plans to set up one.

“This sector inquiry sends a clear signal to member states to respect EU state aid rules when implementing capacity mechanisms, and contributes to the Commission’s goal to build a true Energy Union in Europe,” European Competition Commissioner Margrethe Vestager said.

 

Full Content: The Financial Times

 

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