Policy & Regulation

Brussels set to re-open probe into UK capacity payments

The European Commission will soon launch an investigation into the treatment of demand-side response services within the UK capacity market The European Commission will soon launch an investigation into the treatment of demand-side response services within the UK capacity market.
By Andreas Walstad 16 January 2019 0 33837
Cleared capacity payments in the UK

The European Commission is expected to launch a new investigation into the UK’s subsidy scheme for power plants in the coming weeks.

The commission first approved the UK’s capacity payment scheme in July 2014, but auctions were suspended last November after the European Court of Justice (ECJ) ruled that the commission should have carried out a more thorough investigation before approving the scheme.

Capacity payments are national subsidies, usually funded by end-users, paid to operators...