ECJ rules UK backup power subsidies are illegal

ECJ rules UK backup power subsidies are illegal

The European Court of Justice (ECJ) ruled Thursday that a UK backup power scheme was illegal.

The scheme involved “remunerating electricity capacity providers in exchange for their commitment to provide electricity or reduce or delay their electricity consumption during times of system stress.”

In its ruling, the ECJ found that the power scheme constituted illegal state aid. Ministers are now working to seek state aid approval, and it is unclear how long that will take. In the meantime, the government is not allowed to make payments into the scheme until the government can gain permission from the European commission.