EU approves France's revised electricity capacity plan

The European Union (EU) regulators on Tuesday gave the green light to a French revised plan for electricity capacity, saying it complied with the bloc's state aid rules.

France's capacity mechanism, amended by French authorities, improved the security of electricity supply while maintaining competition, said the European Commission, the EU's executive arm, in a statement.

"The French capacity mechanism will be open to all capacity providers, including those located across the border, and allow new players to enter the market," the EU Commissioner for Competition Margrethe Vestager was quoted as saying in the statement.

Brussels opened an in-depth investigation into the French plan in November last year, out of concern that the mechanism might favor certain companies over their competitors and hinder the entry of new players.

Paris later proposed remedies to address Brussels' concerns, including introducing a series of measures to prevent possible market manipulation.

The capacity mechanism, which would be operational in France as of 2017, aimed to ensure security of electricity supplies in view of the expected increases in electricity demand and potential closures of part of the existing French generation fleet, the Commission said. Endit