PreussenElektra AG v Schhleswag AG [2001] EUECJ C-379/98

European Court of Justice judgment (about 13 pages) in a dispute over the compatibility with EC law of a German scheme for subsidising renewable electricity generation. The scheme obliges generators to pay premium prices for electricity from renewables, and to share the cost of doing so between themselves.

The court found that the State aid rules could not apply as the companies involved were under private ownership, and the subsidies provided by the scheme were not at any time State resources.

It also rejected a challenge based on Articles 28-30: although the scheme is a barrier to cross-border trade, it was considered justified by its environmental purposes “in the current state of Community law concerning the electricity market” (i.e. the absence of effective EC arrangements for supporting renewables without imposing barriers to trade).

For further information or advice please contact Franck Latrémolière.

Filed under ECJ/CFI, Electricity, State aid.

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