Agreement on guaranteed power purchase made with a public company constitutes state aid
Date: 13/02/2012In its ruling dated 13 February 2012 the General Court found that the power purchase agreement entered into between a private company and a (Hungarian) public company constitutes unauthorised state aid. The public company agreed to purchase a fixed quantity of electricity regardless of actual consumption, and so enabled the private company to exploit the advantages it could not have otherwise obtained if competition regulations had been observed. The General court also confirmed that although the agreement was signed before the state’s (Hungary) accession to the European Union, it must be considered after the accession in light of the EU state aid rules. For more information please contact Juraj Čorba on juraj.corba@rc-cms.sk.