|Author (Corporate)||Court of Justice of the European Union|
|Content Type||News, Overview|
Judgment from the Court of Justice of the European Union (CJEU) relating to charges imposed by Member States on the export of electricity generated in their own territory.
With a view to ensuring the reliability and security of the Slovak energy network following the cessation of two units at a nuclear power plant, a specific charge was imposed for the use of this network to export electricity generated in Slovakia, including export to the Member States. A sum of approximately €6.8 million was imposed as a charge on Korlea Invest, an electricity supply company established under Slovak law (the legal successor of which is the company FENS, also established in Slovakia). The company decided to contest the legality of that charge before the Slovak courts, claiming that it constituted a charge having equivalent effect to a customs duty, the imposition of which is prohibited by the principle of the free movement of goods.
A Slovak District Court forwarded the issue to the CJEU to understand whether the charge is contrary to that principle of EU law. On 6 December 2018, the Court of Justice stated that such a charge is not justified by the objective of ensuring the security of supply of electricity in the national territory. The Court concluded that the charge has equivalent effect to a customs duty, both for electricity exported to another Member State and for electricity exported outside EU territory. The charge contested in this case is therefore not compatible with the principle of the free movement of goods.
|Subject Categories||Energy, Law|
|Subject Tags||Energy Security|
|Keywords||CJEU Judgments, Free Movement of Goods
|Countries / Regions||Slovakia|
|International Organisations||European Union [EU]|