A PYMNTS Company

EU: Vestager says power back-up subsidies needed, but at right price

By  |  April 13, 2016

Mechanisms that allow government to pay utilities to maintain back-up generation can be needed to prevent blackouts, Europe’s state aid chief said on Wednesday, but said she would act against any nations who used the schemes illegally.

European Competition Commissioner Margrethe Vestager ordered a year-long inquiry into mechanisms in 11 EU countries to see whether such subsidies, known as capacity mechanisms, break the bloc’s state aid rules

“European consumers and companies should not have to face black-outs and capacity mechanisms can help to reduce this risk,” Vestager said. “At the same time, consumers should not over-pay for electricity and competition should not be undermined”

She told a news conference in Brussels she would pursue governments if she found evidence of illegal subsidies, but no decision had been taken yet. The 11 countries included in the inquiry are Belgium, Croatia, Denmark, France, Germany, Ireland, Italy, Poland, Portugal, Spain and Sweden.

Full Content: WallStreetJournal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.