The EU General Court rules on the matter of power purchase agreements entailing effects of foreclosure that limited the scope for eligible customers to switch to the free market (Dunamenti / Tisza)

Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

Market Operator in Electricity Distribution: Long-term Purchasing Agreements Must Balance Risks and Rewards* Main points A market operator accepts to be bound in long-term contracts, which entail more risk because market conditions may change, only when he gets compensated with more certainty that costs will remain stable. Contractual clauses which vary from standard commercial practice are suspect. A measure can be selective even when it uses objective criteria to define eligible beneficiaries. Trade can be affected and competition distorted when a public authority reserves a certain infrastructural capacity only for certain operators. Undertakings can claim legitimate expectations only when assurances are given by an EU institution. The Commission is under no obligation to quantify

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Phedon Nicolaides, The EU General Court rules on the matter of power purchase agreements entailing effects of foreclosure that limited the scope for eligible customers to switch to the free market (Dunamenti / Tisza), 30 April 2014, e-Competitions Bulletin April 2014, Art. N° 66475

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