IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
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Inception date: 03 Aug 2015 | Removal date: open ended
Still in force

Financial grant

The United Kingdom's closure aid to UK Coal has a total maximum value of GBP 48 million (USD 75 million). The direct beneficiaries of the aid are UK Coal Kellingley Ltd, UK Coal Thoresby Ltd and their management company UK Coal Production Ltd. These three companies are part of UK Coal.

In connection with the closure of the UK based coal mines Kellingley Colliery and Thoresby Colliery, the aid finances statutory redundancy payments, termination bonuses and concessionary fuel entitlements.

The European Commission decided on 24 July 2015 not to raise objections against the state aid.

In this context, the Commission noted that: "The notified aid measure favours specific economic undertakings (ed. the beneficiaries) ... and allows these specific beneficiaries to be relieved, by means of State resources transferred directly from the State budget, of a part of the economic and social costs which they would normally have to bear themselves. Consequently, the financial aid from the State may strengthen the position of the beneficiaries in relation to their competitors in the EU and therefore has potentially distorting effects on competition. Coal is widely traded between Member States and the support to mining units that are planned to produce coal until the end of 2015 may therefore affect trade between Member States."

However, the Commission decided: "... not to raise objections to the aid on the grounds that it is compatible with the internal market pursuant to Council Decision 2010/787/EU of 10 December 2010 on State aid to facilitate the closure of uncompetitive coal mines."

Following the Commission's decision, the United Kingdom approved the granting of aid to UK Coal on 3 August 2015.

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
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AFFECTED SECTORS AND PRODUCTS

110 Coal & peat
2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.
270112 Bituminous coal

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