EU launches sector inquiry into mechanisms to ensure electricity supplies

The European Union (EU) launched a state aid sector inquiry into national measures to ensure that adequate capacity to produce electricity was available at all times to avoid black-outs, the so-called "capacity mechanisms", said the European Commission on Wednesday.

The inquiry would gather information on capacity mechanisms to examine, in particular, whether they ensure sufficient electricity supply without distorting competition or trade in the EU Single Market.

The sector inquiry, the first under EU state aid rules, would initially request information on a representative sample of member states that have capacity mechanisms in place or are considering them, which are Belgium, Croatia, Denmark, France, Germany, Ireland, Italy, Poland, Portugal, Spain and Sweden.

It complemented the Commission's Energy Union Strategy to create a connected, integrated and secure energy market in Europe, said the Commission.

"Governments have a legitimate interest to ensure that there is sufficient electricity supply - households and industry should not face black-outs," said Margrethe Vestager, EU Commissioner in charge of competition policy. "My role is to safeguard that public measures to underpin investment in electricity supplies do not unduly favor particular producers or technologies, or create obstacles to trade across national borders.

She also added that this sector inquiry "sends a clear signal to member states to respect EU state aid rules when implementing capacity mechanisms, and contributes to the Commission's goal to build a true Energy Union in Europe." Endit