Germany's capacity reserve likely in breach with EU law

The cep already last month pointed to breaches of EU principles

German plans could be sees as a subsidy for utilities

Last month’s decision by Germany's government to pay utilities to shift power capacity to a coal-fired reserve from 2017 may well breach EU rules, legal experts at the German parliament have found, EurActiv reported citing a Reuters story. The legal experts concluded that the plans could be seen as a subsidy that would need EU approval. The cep noted already last month in a paper that transferring the power plants to a capacity reserve without prior tendering procedures breaches the principle of a competitive EU internal energy market.