Press Release: State aid: European Commission clears public service compensation to electricity generators in Spain

The European Commission has authorised a compensation which Spain intends to grant to electricity generators to meet the costs of fulfilling a public service obligation, namely producing certain volumes of electricity out of indigenous coal. The directive that governs the functioning of the EU electricity market allows Member States to put in place such public service obligations, motivated by reasons of security of energy supply, within a limit of 15% of national electricity consumption. The state support is in line with EU State aid rules on public service compensations because it will not result in over-compensating electricity generators for fulfilling the obligations imposed on them.