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EU competition update: General Court dismisses challenge to Spanish and Portuguese electricity input-cost aid; Commission merger clearances and filings; FSR concentration notification (12 March 2025)

Published on: 12 March 2025

Published by a LexisNexis Competition expert
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Article summary

State aid General Court dismisses action against Commission’s decision approving measure allowing Spain and Portugal to support input costs of fossil-fuel technologies in the Iberian market

The General Court has handed down its judgment in Case T-596/22, PGI Spain and Others v Commission, a challenge to the Commission’s decision of 8 June 2022 authorising a Spanish and Portuguese measure designed to bring down wholesale electricity prices in the Iberian market by reducing the input costs of fossil fuel‑fired power stations (SA.102454) (the Commission’s 2022 decision). The General Court rejected the action.

Background

Against the backdrop of a sustained rise in gas prices, on 20 and 23 May 2022 Spain and Portugal, respectively, informed the Commission of their intention to adopt a measure—estimated at €6.3bn for Spain and €2.1bn for Portugal—to cut the input costs of fossil fuel‑fired power stations, with the aim of lowering their production costs and, in turn, the wholesale electricity price across the Iberian Peninsula...

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