The European Commission has approved under EU State aid rules a Polish scheme to support high-efficiency cogeneration and reduced surcharges to finance the scheme for energy-intensive users. It also opened an investigation into reduced surcharges to finance Poland’s capacity mechanism.
Update – the authorisation notice has been published in the Official Journal.
The European Commission has found that a UK tax scheme is partly justified and does not constitute State aid, insofar as it ensures the proper functioning and effectiveness of the relevant tax rules. However, the Commission found that the scheme unduly exempted certain multinational groups from these UK rules targeting tax avoidance. This is illegal under EU State aid rules. The UK must now recover the illegal State aid from the multinational companies that benefited from it.
The Commission failed to establish that the advantages provided for by the EEG 2012 involved State resources and therefore constituted State aid.
On 26 March 2019, the Secretariat sent an Opening Letter to Bosnia and Herzegovina in Case ECS-10/18. It its letter, the Secretariat addressed its concerns with regard to the State aid compliance of a public guarantee granted in favour of the Export-Import Bank of China for a loan by the latter to the public utility Elektroprivreda BiH d.d. Sarajevo for the Tuzla 7 project.
Update – Invitation to submit comments pursuant to Article 108(2) of the Treaty on the Functioning of the European Union Text with EEA relevance published in the Official Journal.
The Secretariat published today the preliminary results of a study revealing that the Energy Community Contracting Parties support electricity generated from coal with some EUR 2.4 billion of direct and certain types of indirect subsidies annually. The study concludes that with the elimination of state aid via direct subsidies to coal and introduction of a carbon price, not a single coal power plant in the Energy Community would be able to operate without significant losses.