European Commission appeals capacity market court ruling

The European Commission has lodged an appeal against the court ruling that resulted in the recent suspension of the capacity market, the boss of Tempus Energy has confirmed.

Back in November the European Court of Justice (ECJ) upheld an appeal by the company against the commission’s decision in 2014 to approve the capacity market under state aid rules. The judgement rendered the scheme illegal, forcing all auctions and payments to be halted.

A new case has appeared on the ECJ website naming the European Commission and Tempus Energy as the parties involved. The only other information listed is the date of the filing (25 January).

Tempus Energy chief executive Sara Bell told Utility Week the posting refers to an appeal against the court’s ruling.

Bell expressed confidence that Tempus Energy will win the case and chastised the commission for wasting taxpayers’ money.

“Electricity customers are being forced to subsidise dirty, polluting fossil fuel when alternative, cheaper technologies already exist,” she said.

“The ECJ recognised electricity customers had been ripped off and ordered the commission to do their job properly and follow their own rules.

“European children have a right to breathe clean air and benefit from the new innovation jobs of the future instead of being forced to subsidise dirty, old and anti-competitive technologies. We will keep fighting for these rights and no shameful politician will get away with this.”

The Department for Business, Energy and Industrial Strategy (BEIS) has yet to respond to a request for comment.

Earlier this month the department announced its intention to resume collecting market payments from suppliers during the current standstill period to enable them to be promptly redistributed to contract holders if the scheme is reinstated.

BEIS has also revealed plans to hold a T-1 auction over the summer and a T-3 auction next year to replace those previously scheduled for early 2019.