State Aid

MEASURE TO ADDRESS BELGIAN ELECTRICITY CAPACITY

The Commission has approved changes to Belgium’s capacity mechanism for the supply of electricity, the first assessed under the 2022 Guidelines on State aid for climate, environmental protection and energy. The previously approved €4 billion of State aid will now include stricter emission limits and changes to the financing mechanism and daily operations. Further information is available here.

STATE APPOINTED BOARD MEMBERS

The General Court has held that when the Commission is assessing whether a measure constitutes State aid, it must consider the participation of government-appointed board members. The Court partially annulled a Commission decision that a capital injection by PostNord to a subsidiary did not constitute state aid. Eight out of 11 of the board members of PostNord are appointed by Danish and Swedish government ministers. Further information is available here.

STATE AID POLICY

The DG for Competition Policy set out the Commission’s priorities for State aid in a recent speech. The Commission is focusing on linking aid to decarbonisation and energy efficiency and on assessing the future of the Temporary Crisis and Transition Framework, which was adopted in March 2022. Further information is available here.