UK Energy Bill Illegal Under Existing EU Rules, Lawyers Claim
Barbara Lewis and Karolin Schaps, Reuters
Britain’s plans to reward nuclear plant operators through fixed prices for low-carbon energy are illegal under existing EU rules and efforts to adapt them are likely to draw opposition from other member states, EU and legal sources said.
Britain plans to reform its electricity market to fix a minimum price for nuclear, wind and solar-generated power, which is carbon free.
The proposals are being assessed by the British parliament but the subsidy instruments, named contracts-for-difference (CfDs), will also require approval from the European Commission, the EU executive, under state aid rules.