State aid clearance for CCL aid to UK energy intensive users

DG Competition decision (6 pages, PDF) clearing under the Article 87 State aid rules two additional climate change agreements made by the UK government with the Cold Storage and Distribution Federation and the British Glass Manufacturing Federation. These agreements reduce the climate change levy for the federations' members in exchange for a target for improvements in energy efficiency agreed with each federation. The Commission cleared these federations' participation in the scheme until 2011 (ten years after the introduction of the levy) on the grounds that there was evidence that such agreements were a more effective way of reducing carbon dioxide emissions than the imposition of the full climate change levy. Under its 2001 environmental guidelines (13 pages, PDF) it did not need to examine whether all the aid provided under the agreements was necessary to make the federations enter into these agreements or the members of the federations reach the agreed targets.

For further information or advice please contact Franck Latrémolière.

Filed under DG Competition, DTI/BERR, Electricity.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon