Mott's Blog

The European Commission's Directorate General for Competition is about to announce a decision on the Polish Green Certificate matter, SA.37224 (2013/CP). The complaint to the Commission alleged that the certificates were state aid and had to be notified and approved as such under the European Treaty, Articles 107 and 108. This same viewpoint was internally expressed to the Minister of Economy in 2013 by the head of the Office of Competition and Consumer Protection in Poland. The Commission has apparently told UOKiK that it contends that the certificates are state aid. [An obvious point since every certificate program since 2001 has been classified as state aid by the Commission]. See references in " Why Poland Urgently Needs a New Green Certificate Law," gramwzielone.com [PL]. [ English version] . The Commission has the authority to declare state aid unlawful and is required to do so if it is not notified. The failure to notify means that the certificates are null a...

Cavalry Charge Saves the Day! Once Poland enacts the new renewable energy law, unless it is changed, there should be a challenge in Brussels to compel the Polish Government to make necessary changes due to the state aid rules. Some of the arguments can be: 1.  The treatment of prosumers ( only 80% of the grid price for electricity sold) is discriminatory and arbitrary. It is anti-competitive and distorts the market in favor of large producers; 2. Forcing projects under 1 MW to go to an auction is unfair, anti-competitive and will promote market concentration by reducing or eliminating small RES facilities;                                                                                                         3. The...

The Office of Competition and Consumer Protection (UOKiK) continues the view expressed by the previous Director that the tax exemptions in the draft RES law are state aid. The correspondence dated May 23, 2014 discussing Article 177 of the July 2014 version of the law clearly agrees with the earlier assessment that tax exemptions are state aid. This "is state aid within the meaning of Article 107 of the TFEU [Treaty for the Functioning of the European Union]." They also note that the GBER or block exemption rule that the Government is relying upon to avoid notification does not cover the tax exemptions. OCCP concluded in November 28, 2013: “In this context, I wish to point out that   the exemption from excise duty for RES energy   in the Directive on the taxation of energy is optional, and hence the establishment of this type of release is not an obligation of a Member State, but the only element implemented by environmental policies. Bearing in mind ...

The Great Polish Train Wreck of 2015? At this point the Polish Government has apparently made a decision to not notify the Commission on the Green Certificate system. Since there is absolutely no doubt that it does constitute state aid and the Commission has informally signaled that to the Government, it is probably a good time to ask what will happen next. This will be such a disaster that the Government will have to back off its current stance. There is simply no alternative. State aid that is done without notification is unlawful and must be recovered from the recipients.  See CELF case (C-199/06) European Court of Justice, February 12, 2008. .   “ In cases where Member States do not notify the Commission of its plans to grant or alter aid prior to such aid being put into effect, the aid is unlawful in relation to Community law from the time that it is granted.”   Notice From The Commission , “Towards an effective implementation of Commission decisions orderin...