EURELECTRIC Urges Commission To Adopt Strong State Aid Guidelines

News Article

EURELECTRIC President Johannes Teyssen has expressed the European electricity industry's full support for the ongoing review of the EU's Environmental and Energy Aid Guidelines (EEAG), part of the EU's state aid modernisation process.

With less than two weeks to go before the expected adoption, Mr Teyssen, C.EO of E.ON, urged European Commission President Barroso to ensure that strong draft guidelines are adopted without delay. No watering down of the proposed draft guidelines should be accepted, he said.

The European electricity industry sees state aid modernisation as a tool to not only improve the state aid control framework, but also the European internal energy market. The rapid increase of various types of support has led to significant market distortions, and an effective European framework, together with streamlined processes and simplification, is needed to pave the way for a European, market-based and cost-efficient energy transition.

In particular, EURELECTRIC believes that:

  • Granting support when prices are negative is unacceptable;
  • The review of the EEAG should be used as an opportunity to integrate small-scale renewables into the market;
  • Balancing should become the rule, with all power producers bearing balancing responsibility.

The EU's state aid framework for the energy sector comprises the Energy and Environment Guidelines (EEAG), the General Block Exemption Regulation (GBER) and RDI Guidelines. The European Commission is currently reviewing all three sets of rules, within a broader process of state aid modernisation. EURELECTRIC has responded to all three consultations - see  here (EEAG),  here (GBER) and  here (RDI) - and has urged the Commission to ensure a coherent framework for innovation across the guidelines. A previous press release is available here.