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Clifford Chance

Clifford Chance


Standby Power Standstill: Capacity Market Suspended After European Court Decision

23 November 2018

On 15 November 2018, the General Court of the Court of Justice of the EU issued its judgment in the case of Tempus Energy v Commission, annulling the Commission decision not to raise objections to the establishment of the UK capacity market. The judgment means that the State aid approval for the capacity market has been suspended until a re-clearance of the decision is issued by the Commission. The capacity market and all payments to holders of capacity market agreements are on hold pending the outcome of the Commission's investigation. In this briefing we set out an overview of the effects of the judgment and the next steps in the process.

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