The European Commission said it has opened an in-depth investigation
to assess whether German plans to set up an electricity capacity reserve
comply with EU state aid rules.
The Commission said on April 7 that has concerns that the measure may
distort competition and favour power plant operators over demand
response operators.
“Reliable electricity supplies are crucial to a functioning economy
and Germany has a legitimate interest to ensure security of supply for
its citizens and businesses,” EU Competition Policy Commissioner
Margrethe Vestager said.
“It is our role to ensure that companies are granted state support
only when it is truly necessary and in a manner that limits distortions
of competition. We currently have a number of concerns regarding the
need and design of the German strategic reserve. This is why we will
investigate further and invite third parties to submit their views on
the measure,” the EU competition chief added.
The Commission said that it would now investigate further whether its
initial concerns are justified. The opening of an in-depth
investigation gives Germany and interested third parties an opportunity
to submit comments. It does not prejudge the outcome of the
investigation.
https://www.neweurope.eu/article/eu-opens-probe-german-electricity-capacity-reserve-plans/