Commission approves six electricity capacity mechanisms to ensure security of supply in six EU Member States

Further information:

These six capacity mechanisms concern more than half of the EU population. They cover a range of different types of mechanism that address the specific need in each Member State, namely strategic reserves, market-wide mechanisms and measures specifically promoting demand response.

The Commission found that the measures contribute to ensuring security of supply whilst preserving competition in the Single Market.

Background information

Capacity mechanisms have the objective of ensuring security of electricity supply. If they are not well-designed they may cause higher electricity prices for consumers, give undue advantages to certain energy operators or hinder electricity flows across EU borders.

That is why the Commission decided to assess the six mechanisms, to ensure they meet criteria under EU State aid rules, in particular the Commission's 2014 Guidelines on State Aid for Environmental Protection and Energy. In this context, the Commission also took into account insights from its 2016 State aid sector inquiry on capacity mechanisms.

The European Commission approved on 7 February 2018 a set of electricity capacity mechanisms in Belgium, France, Germany, Greece, Italy and Poland, under EU State aid rules.

• Primary Source

European Commission: Q&A on this Decision http://europa.eu/rapid/press-release_MEMO-18-681_en.htm

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