ANNOUNCED AS TEMPORARYNo
On 21 May 2014, the European Commission approved the British compensation scheme for energy-intensive industries. It was announced on 12 December 2012 and aimed at offsetting the costs of energy and climate change policies, particularly the indirect costs of the Carbon Price Floor. In effect, the scheme is directed at the iron and steel, chemicals, paper and plastics industries.
According to the UK government, the scheme shall cost approximately 250 million GBP. It has been in effect since 1 April 2013 and will be in force until 31 December 2020.
The Commission argued that "the scheme has the potential to distort competition and trade between Member States, as beneficiaries compete with companies operating in the same sectors in other Member States" (art. 31, letter from the EC to the UK, 21.05.2014). Despite this statement, the Commission argued the aid is compatible with the single market.
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.
According to a 2016 statement by the Business Secretary, 50 million GBP of the budget was offered alone to Tata Steel UK.
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