The Government is facing legal action for allegedly flouting a European court ruling against its £1bn energy back-up scheme. The legal claim, made in the High Court on Tuesday afternoon, alleged that the Government is effectively keeping an “unlawful” power plant subsidy regime open after the European Union’s Court of Justice ruled against it. The shock EU verdict plunged Britain’s plans to keep the lights on into disarray late last year by calling for an immediate halt to the scheme, which pays power plants to guarantee their power generation when demand for electricity is high. Despite the ruling, officials are planning another auction for later this summer, and have encouraged energy companies to continue collecting subsidies from energy bills. A spokesman for the Department of Business Energy and Industrial Strategy said it plans to “robustly defend this challenge”. “Working with the Commission and industry we are confident in the steps we are taking to reinstate the capacity market,” he added. Tempus Energy, which lodged the original EU legal action, said: “Enforcing the judgment should be the responsibility of the UK government, but instead they have unlawfully continued with the scheme. Tempus has no choice but to take action.” Government has sought to assure worried energy companies and investors that the sudden stand-still is a “procedural issue” for the scheme, which will be reinstated after an EU review.
Telegraph 5th March 2019 read more »