Subsidy cases – you wait 15 months and then two come along at once!
In February 2022, judgment in the first domestic case on the TCA subsidy regime was handed down and in March 2022 the first international subsidy complaint since Brexit was made.
In February 2022, judgment in the first domestic case on the TCA subsidy regime was handed down (you can read our article on it here) and in March 2022 the first international subsidy complaint since Brexit was made.
On 28 March, the EU issued a request for consultations at the World Trade Organisation on the UK’s alleged discriminatory practices when granting subsidies for green energy projects. The EU say that the criteria used by the UK when awarding subsidies for offshore wind energy projects favour UK products over imported ones.
Under the UK’s Contracts for Difference (CfD) scheme, financial support is awarded to green energy projects through a bidding process. The Government says that the aim of the CfD scheme is to incentivise investment in renewable energy by providing developers of these projects, which have high upfront costs and long lifetimes with direct protection from the volatile wholesale energy prices. They are also said to protect consumers from paying increased support costs when electricity prices are high.
The EU says that when assessing bids for CfD support, the UK government applies a local content criterion to determine the eligibility of operators and whether they receive financial support. The EU say that this is a breach of the WTO ‘national treatment’ principle, that imported products must be able to compete on an equal footing with domestic ones and that it harms EU suppliers and increases green energy prices.
The next step in the dispute resolution process is for consultation between the parties in order to settle the dispute. If the dispute can’t be settled within 60 days, the EU can request that the WTO sets up a panel to rule on the matter.
The UK government has said that it will “rigorously contest the EU’s challenge”. It will be interesting to see what comes of this case.
For more information please contact Angelica Hymers or Alex Kynoch
Contact
Angelica Hymers
Senior Associate
angelica.hymers@brownejacobson.com
+44 (0)115 976 6092
Related expertise
You may be interested in...
Online Event
'Getting ready to reform – preparing for the new Procurement Bill' webinar
Legal Update
AB vs Worcestershire County Council and Birmingham City Council
Legal Update
A new era of opportunity for high street regeneration?
Legal Update
Subsidy control lessons to be learnt from Bulb
Legal Update - Public matters newsletter
Public matters - April 2023
Legal Update - ESG in 3D
ESG in 3D - April 2023 (Edition 1)
Legal Update - Public matters newsletter
Public matters - March 2023
Legal Update
BNG update – BNG and tax implications: Government call for evidence
Opinion
Biodiversity Net Gain - Government publishes its metric consultation response & Natural England publishes their update biodiversity metric 4.0
Legal Update
Changes to the Standard Selection Questionnaire effective from 1 April 2023
Legal Update
Automatic suspension and procurement law
Press Release
UK and Ireland law firm Browne Jacobson joins UKREiiF 2023
Legal Update
Supreme Court will hear Worcestershire case on local authority responsibility for Section 117 Aftercare in April 2023
Legal Update
HXA and YXA failure to remove cases: Key considerations in anticipation of the Supreme Court judgment
Published Article
Combined County Authorities - Key differences to Combined Authorities
Guide
Devolution: a catalyst for long-term, positive change in local communities
Press Release
Law firm Browne Jacobson appointed to work alongside the Government Legal Department - the Department for Environment, Food & Rural Affairs
Legal Update - Public matters newsletter
Public matters - February 2023
Opinion
‘Awaab’s Law’- a significant amendment to the Social Housing Regulation Bill
Legal Update
Procurement Bill debarment regime and ECHR issues
Published Article
Digital Twin Technologies: key legal contractual considerations
Guide
Public procurement: key facts and compliance considerations
Press Release
Browne Jacobson’s real estate specialists advise Chesterfield Borough Council on prestigious new development - One Waterside Place
Opinion
Will fixed recoverable costs in housing conditions claims see the light of day?
Online Event
Register your interest to join our next Home Delivery Academy
Legal Update
Government introduces first Streamlined Subsidy Schemes under new regime
Press Release
Browne Jacobson advise High Peak Borough Council on future high street funded acquisition as part of Buxton regeneration vision
Opinion
Term-time school worker entitled to national minimum wage for unworked basic hours
Legal Update
The rising number of cyber-attacks
Legal Update
Out of this world insurance – proposed changes to orbital liability and insurance
Opinion
Fire and re-hire – draft statutory code
Guide
Government response to the consultation on the Higher-Risk Buildings Regulations
Legal Update - Public matters newsletter
Public matters - January 2023
Legal Update
Supreme Court grants permission to appeal in landmark housing case
Press Release
Browne Jacobson advises Natural England on investigation of ‘first in its kind’ sentenced Devon farmer
Published Article
What are freeports and what benefits could they offer?
On-Demand
Combined county authorities – Are they really different?
Legal Update
Dangerous Dogs
Published Article
Reaching cloud nine? Public procurement for cloud-based services
