Press Release: State aid: Commission approves UK compensation for indirect costs of carbon price floor

On 21 May 2014, the European Commission found UK plans to compensate certain energy-intensive users from higher electricity costs triggered by a mandatory carbon price floor to be in line with EU state aid rules.

The UK carbon price floor, a tax on carbon-intensive fuels, is aimed at reducing the use of electricity produced by fossil fuels. The compensation partially offsets the higher electricity costs, similarly to what is done for the costs of the EU Emission Trading Scheme (ETS). The Commission concluded that the measure would further EU energy objectives without unduly distorting competition in the Single Market.

ESO: Background information: State aid: Commission adopts new rules on public support for environmental protection and energy http://www.europeansources.info/record/press-release-state-aid-commission-adopts-new-rules-on-public-support-for-environmental-protection-and-energy/

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