Information notice on questions addressed to the Commission regarding the decision on the aid measure SA.34947 (2013/C) (ex 2013/N) for support to the Hinkley Point C Nuclear Power Station

(2015/C 62/09)

According to Article 194 of the TFEU, Member States are free to determine their energy mix. The United Kingdom has decided to promote nuclear energy and this decision is within its national competence. However, when public money is spent to support companies the Commission has the duty to verify that this is done in line with the EU State aid rules. Its role is to ensure that any State aid provided is necessary, proportionate and not distortive of competition or trade between Member States.

The Commission initiated the formal investigation procedure on this measure in December 2013, expressing doubts on the compatibility of the aid measure with the internal market based on the information available at that time. The opening decision aimed at ensuring that the final assessment would be well-grounded in facts and analysis and would take into account the views of all interested parties.

As part of the investigation procedure, the Commission received extensive information and submissions from interested parties and the United Kingdom authorities. These new elements, together with the intense and comprehensive scrutiny process conducted by the Commission, have informed the Commission’s assessment. In particular, the investigation showed that the support addresses a genuine market failure, dispelling the Commission’s initial doubts. It also resulted in substantial changes to the level of support compared to the original notification.

On this basis, the Commission adopted the final decision on this measure on 8 October 2014. It found that the modified plans of the United Kingdom to support the investment in a new nuclear power plant at Hinkley Point C were compatible with EU State aid rules.

The public version of the decision has now been published on DG Competition’s website (1) Issues such as the proportionality of the aid and its impact on the deployment of alternative technologies, including renewable energy technologies, are discussed at length in the decision.

(1)  At the following address: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_34947