3/2, 12:26 PM (Source: TeleTrader)
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EU to probe Germany's possible state aid breach

The European Commission announced on Tuesday the launch of an investigation into compensation provided to lignite-fired power plants by the German government for phasing out earlier than foreseen. The Commission expressed doubts that the measure, which would see energy companies RWE and LEAG receive a total of €4.35 billion, is in line with EU state aid rules.

"The phase-out of lignite-fired power plants contributes to the transition to a climate-neutral economy, in line with the European Green Deal objectives. In this respect, our role is to safeguard competition by making sure that the compensation granted to the operators of the plants for phasing out earlier than foreseen is kept to the minimum necessary. The information currently at our disposal does not allow us to confirm this with certainty, and we will now investigate this further," said the Commission's Executive Vice-President Margrethe Vestager.

Breaking the News / DJ