Consultation of the European Union to Germany

The EU Commission has announced that the investigation into Germany’s plans to prematurely shut down its lignite-fired power plants has been deepened.

In the statement, it was recalled that the EU Commission launched an investigation to assess whether the compensation payment plan to the German energy companies RWE and LEAG for the premature closure of lignite power plants in 2021 complies with supporting standards. public.

Recalling that an investigation has been launched especially due to doubts about the proportion of compensation payments covering lost profits and additional mine rehabilitation costs of energy companies, the statement recalled that Germany signed a new agreement with companies for a faster exit from coal last year and changed the management of the previous compensation calculation.

In the statement, it was indicated that Germany did not change the amount of 2.6 billion euros to be awarded to RWE and therefore decided to broaden the scope of the Commission’s ongoing investigation.

Given that the Commission’s preliminary view is that Germany’s compensation to RWE still constitutes public aid, it was noted that it would be examined whether the compensation in question was proportional.

The authority of EU member states to determine how they will provide public support falls within the purview of the EU Commission.

EU countries can only use public subsidies in a way that does not harm competition and is in the public interest. (AA)