30 Nov 2022

Facebook Twitter

The General Court confirms the Commission Decision on new nuclear reactors

In a judgment delivered on 30 November 2022, the General Court has dismissed the action brought by Austria requesting the annulment of the Decision from the Commission approving investment aid for the operation of new nuclear reactors under construction at the Paks nuclear power station site in Hungary.

The objective of the measure in favour of the state-owned company “Paks II” was to gradually replace the four nuclear reactors already operating at the site by providing the company with new reactors free of charge for their operation.

In the judgement, the General Court has inter alia assessed whether the decision to entrust the construction of the new reactors by way of a direct award to a company prior to the aid measure is an aspect inextricably linked to the aid. The General Court furthermore addressed the impact of infringement proceedings regarding the assessment of a state aid measure.

The General Court also addressed the pleas alleging disproportionate distortions of competition and unequal treatment which result in the exclusion of producers of renewable energy from the liberalised internal electricity market. It recalled that Member States are free to determine the composition of their own energy mix and that the Commission cannot require that State financing be allocated to alternative energy sources.

For further information : Press release & Judgment