Cases & Judgments (Energy & Environment)

State aid

State aid can provide incentives to reach the EU targets for a low carbon and energy-efficient economy. The rules for environmental State aid allow a broad range of aid measures for environmental protection, whilst ensuring that any distortions of competition brought about by such measures do not go beyond what is necessary and acceptable.

The Commission monitors State support for companies in the energy and environment sector to ensure that it facilitates the development of an economic activity without affecting trading conditions to an extent contrary to the common interest.

> Guidelines for applying State aid rules in the energy sector

Mergers

In recent years, the Commission has used its powers to control mergers to ensure that energy markets remain competitive. For instance, it imposed remedies in PKN Orlen/Grupa Lotos, E.ON/Innogy and Statoil Fuel and Retail/Dansk Fuels.

Moreover, when reviewing mergers the Commission ensures that innovation is protected and encouraged, so that firms come up with new and better technologies, products or know-how that can help, for instance, to reduce the levels of emissions or bring other sustainability or environmental improvements. Merger control makes sure that there is no loss of innovation caused by mergers between rivals, that would otherwise continue bringing benefits, such as research and advances in technology which are fundamental for economic progress.

Commission decisions in the energy sector

The codes in the far right column indicate the sector according to the General Industrial Classification of Economic Activities (NACE)