Tue. Mar 28th, 2023

Brussels, 7 February 2023

The European Commission has approved a Swedish scheme to reduce peak electricity consumption in the context of Russia’s war against Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022, based on Article 107(3)(b) TFEU, recognising that the EU economy is experiencing a serious disturbance.

The measure provides financial support to achieve the consumption reduction target set by Regulation (EU) 2022/1854 and moderate electricity prices. The aid will be allocated through a competitive bidding process open to all technologies that can deliver consumption reduction. Furthermore, safeguards will be in place to ensure competition between electricity consumers and aggregators and the proper functioning of the electricity market.

The Commission found that the Swedish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, (i) remuneration will be granted to each beneficiary based on the actual additional consumption reduction achieved; and (ii) only the additional consumption reduction taking place within the period of application of Regulation (EU) 2022/1854 will be compensated. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the scheme under EU State aid rules.

More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.105268 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

Source – EU Commission


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