EU Commission publishes guidance for state intervention in electricity

(LEXEGESE) - On 5 November 2013, the European Commission has presented a Communication which gives guidance to Member States on how to make the most of public interventions, how to reform existing ones - especially renewable energy subsidy schemes - and how to effectively design new ones. This concerns back-up capacities for renewable energy, mostly fossil fuel energy which is produced when there is no sun or wind. According th the European Commission, if public interventions are not carefully designed they can severely distort the functioning of the market and lead to higher energy prices both for households and businesses. The aim of this Communication is therefore to give the Member States the necessary information, guidance and best practice in hand to make good choice for their national schemes. While the Communication published is not a legally binding act, it does set out the main principles which the Commission will apply when assessing state interventions relating to renewable support schemes, capacity mechanisms or measures to ensure consumer demand response. They are therefore relevant to the future enforcement of EU state aid rules or EU energy legislation. The Commission will also consider whether to propose legal instruments to ensure that these principles are fully implemented. Renewable energy support schemes These principles are best practice in the EU and might be used by Member States planning to reform their schemes: Financial support should be limited to what is necessary and should help making renewables competitive ...Zum vollständigen Artikel

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