Energy security and public service obligations* On 3 December 2014, the General Court ruled on case T-57/11, Castelnou Energia v Commission. Castelnou Energia (CE) appealed against Commission decision N 178/2010 concerning public service compensation granted by Spain to generators of electricity produced from domestic coal. CE was a producer of electricity from combined cycle plants using natural gas. In order to ensure its energy security, Spain established a system composed of three instruments. First, it imposed an obligation on certain plants to use domestic coal. Second, power plants using more expensive domestic coal received a compensation. Third, these plants were given priority access to the wholesale electricity market (i.e. they were preferred over other suppliers of
The EU General Court holds that environmental harm does not make State aid incompatible with the internal market (Castelnou Energía)
* 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.
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