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CJEU annuled Commission decision that preferencial prices for Renewable Energy (feed-in tariff) constitute state aid
CJEU has ruled on a long waited case, in which the plaintiff Germany successfuly defended its thesis that preferencial price for purchasing renewable sourses energy does not constitute state aid, when they are not payd by budget means and the state does not have effective control over the incoming funds. This is a landmark case, as in essence the bulgarian support scheme "preferencial prices", introduced in Bulgaria and notified with the National Plan for Development of Renewable Energy Sourses is not a state aid as the bulgarian state and the Commission claimed. Bulgaria has esencially stated that:
"Разходите, свързани с тази схема не се покриват от бюджета. Те се включват в цената за пренос на електрическа енергия, като по този начин се заплащат от всички потребители, пропорционално на тяхното потребление."
The court decision essencialy nulls Notification for State Aid SA.44840 (2016/NN) with №04.080.2016 C(2016) 5205 final
Case C-405/16 revokes the claim for double financing in cases where the "preferencial price" support scheme is involved. Serious corrections in the Bulgarian legislature are to be expected, as well as a new notification of the Bulgarian Renewable Energy Law.
Some of the highlights of the Case are as follows: