CASE COMMENTS: STATE AIDS - COMPENSATION FOR A SGEI – DECISION NOT TO OPEN THE FORMAL PROCEDURE OF INVESTIGATION – SERIOUS DIFFICULTIES
SGEI : The General Court of the European Union rules that aid to electricity generators using domestically-sourced coal in order to ensure a Member States’ security of supplies is in line with Union State aid rules (Castelnou Energia)
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The Spanish rules identify 10 power stations which are obliged to obtain supplies of coal of Spanish origin, whose price is higher than that of other fuels, and to produce certain volumes of electricity from that coal. In order to alleviate the difficulties resulting for these power stations from the increase in their production costs, the rules give them the benefit of a priority call mechanism: the electricity they produce is purchased in preference to that produced by power stations using imported coal or other fuels, which is withdrawn from the daily energy market in order to ensure the priority sale of the output of the power stations in question. A
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