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UK's Capacity Market Scheme Illegal
In November the European Court of Justice declared the UK’s Capacity Market Scheme illegal. It’s a pivotal decision with far-reaching consequences for providers and customers alike.
The UK’s Capacity Market has been suspended indefinitely, following the ECJ’s decision that the scheme does not follow EU State Aid rules. As a result, National Grid is not permitted to issue subsidies or to hold capacity auctions for power companies. Auctions that were planned for early 2019 have already been postponed with the T-1 auction now due to take place in Summer 2019, assuming state aid hurdles can be overcome.
This seismic shift in the energy landscape leaves companies and their customers with a lot of unanswered questions. Let’s tackle some of the biggest:
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