The European Court of Justice Decision in Case C–206/06, Essent Netwerk Noord BV

Abstract: The European Court of Justice stated in a judgment of 17 July 2008 that a price surcharge for electricity to recover stranded costs among domestic producers will be contrary to either Article 25 or 90 EC and in addition be contrary to the prohibition of State aid in Article 87(1) EC. In relation to the State aid issue the judgment is supplementing the PreussenElektra Case and contributes to clarifying when the intervention is made by State resources or not. The new judgment states that price surcharge on the transmission service, where the proceeds are used to give preference to domestic electricity producers, is contrary to Article 25 or 90 EC, and in addition will be tantamount to State aid after Article 87(1) EC.