Achieving your objectives within the subsidy control regime: a legal...
Jun 4 2024
A Bevan Brittan and Economic Insights webinar
Read MoreThe EU Commission formally approved the UK Government's support of its Green Deal initiative on 5 February 2013 and found that this support is in line with EU rules on state aid and will ultimately assist competition.
The EU Commission formally approved the UK Government's support
of its Green Deal initiative on 5 February 2013 and found that this
support is in line with EU rules on state aid and will ultimately
assist competition. The Government's support for the initiative is
worth approximately £600m (approximately €700m) and Commission Vice
President Joaquín Almunia, in charge of competition policy,
commented that:
"The UK Green Deal allows consumers and businesses to improve
the energy efficiency of their buildings without making huge
upfront investments. This is another example of how our policy of
state aid control can support private investment in energy saving
and enhance competition at the same time."
The UK are not the first country to seek EU approval for an
innovative energy efficiency scheme. It is, however,
reassuring that notwithstanding the recent negative publicity
surrounding the formal launch of Green Deal in January 2013, the EU
Commission found that the scheme is:
Crucially, as the benefits from the scheme (i.e. lower heating
bills) flow through to the end-consumer, the potential distortions
of the market are limited when compared to the environmental
benefits the Green Deal initiative aims to deliver. The UK
Government has also addressed the Commission's concerns regarding
the role of GIB in the Green Deal by committing that GIB will
withdraw from the market once private investors step in.
Bevan Brittan contributed to the original submission regarding the
pre-application notification to state aid and we responded to
supplementary queries arising subsequently due to our involvement
on the Birmingham Energy Savers - Delivery Partner
project (which formed part of the pre-notification).
Birmingham City Council appointed its Delivery Partner, Carillion
Energy Services Limited in November 2012 and the EU Commission's
approval of the Green Deal initiative means that Birmingham City
Council is now in position to realise the benefits of its
innovative partnership - Europe's largest domestic property
retrofit Project.
If you would like to know more about Green Deal, the wider energy
agenda and key procurement issues to consider around complex and
innovative schemes please contact us.
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