In this Market View, Paul Exley and Matt Lewy consider the recent Tempus judgment of the European Court, its impact on the UK’s electricity capacity market and the implications for potential investors.*
For a full copy of this article from Utility Week, please click the title link below:
* On 24 October 2019, the European Commission ruled that the capacity market is compatible with State Aid principles, effectively annulling the suspension resulting from the prior Tempus ruling. Accordingly the UK government intends to make around £1bn of backpayments in capacity market payments that were not made during the suspension, with such payments to be made in early 2020. In addition, the UK government is to hold three rounds of T1 and T4 capacity auctions in 2020, securing capacity market needs until 2024.