November 29
2021
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Dolores Utrilla
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13th January 2020
Competition & State Aid

Actions lodged before the General Court against the Italian capacity mechanism

Two actions for annulment brought before the General Court in the area of State aid law were published in the Official Journal of the European Union today. The actions were lodged by two Italian companies, Tirreno Power SpA and Set SpA, on 15 November 2019 against Decision c(2019) of 14 June 2019. By that Decision, the European Commission, notified by the Italian State of amendments to the mechanism to remunerate electricity generation capacity (‘market-wide capacity mechanism’) previously authorised by the Commission, decided not to raise objections to the new notified measure, finding it to be compatible with the internal market.

In its application, Set SpA relies on a single plea in law, alleging that the Commission failed to carry out an adequate assessment and thus infringed the rules that apply to the formal investigation procedure. In turn, Tirreno Power SpA claims that the contested Decision infringes not only the duty to investigate adequately, but also the duty to state adequate reasons and its procedural rights to submit observations.

Access the application of Set v Commission here, and Tirreno Power v Commission here. The earlier procedure before the Commission is available here.

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