Brussels, 08.10.2014 C(2014) 7142 final cor
In the published version of this decision, some information has been omitted, pursuant to articles 24 and 25 of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty, concerning non-disclosure of information covered by professional secrecy. The omissions are shown thus […].
PUBLIC VERSION This document is made information purposes only.
COMMISSION DECISION of 08.10.2014 ON THE AID MEASURE SA.34947 (2013/C) (ex 2013/N) which the United Kingdom is planning to implement for Support to the Hinkley Point C Nuclear Power Station (Only the English version is authentic) (Text with EEA relevance)
COMMISSION DECISION of 08.10.2014 ON THE AID MEASURE SA.34947 (2013/C) (ex 2013/N) which the United Kingdom is planning to implement for Support to the Hinkley Point C Nuclear Power Station
(Only the English version is authentic) (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 108(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on interested parties to submit their comments pursuant to those provisions1, and having regard to their comments, Whereas:
I. PROCEDURE (1) Following pre-notification contacts, the United Kingdom notified measures in support of the new nuclear power station Hinkley Point C ('HPC') on 22 October 2013 by electronic notification, registered by the Commission on the same day. (2) The Commission opened a formal investigation on the notified measures on 18 December 2013, on the ground that it had serious doubts as to their compatibility with State aid rules.
OJ C 69/60 of 7.3.2014, p. 60-98. 2
(3) The Commission decision to initiate the procedure ('Opening Decision') was published on the Directorate General for Competition web site on 31 January 2014, and in the Official Journal of the European Union on 7 March 2014. The Commission called on interested parties to submit their comments. (4)
The UK sent its comments on the Opening Decision on 31 January 2014.
(5) The Commission received comments from interested parties. It forwarded them to the UK, which was given the opportunity to react; its comments were received by on 13 June and 4 July 2014.
II. DESCRIPTION OF THE MEASURES II.1
Contract for Difference
(6) The notified measure consists, first of all, of a Contract for Difference ('CfD') providing revenue support during the operational phase of HPC. The UK had initially notified an Investment Contract, which was defined as an early form of CfD. Due to the fact that negotiations went on for longer than anticipated between the UK and the company fully owning the beneficiary at the time of this decision, EDF Energy plc ('EDF'), the Investment Contract was fully replaced with a CfD. EDF is the UK subsidiary of the French electricity company Electricité de France. (7) The beneficiary is NNB Generation Company Limited ('NNBG'), which at the time of the decision is fully controlled by EDF. The CfD is a private law agreement between NNBG and the CfD Counterparty, Low Carbon Contracts Company Ltd. A separate agreement will be signed between the Secretary of State and the shareholders of NNBG. This separate agreement will only relate to parts of the terms of the transaction, in particular those related to potential shutdown events and gain-share mechanisms. (8) Under the CfD, NNBG will receive an amount of revenues which is determined by the sum of the wholesale market price at which it sells electricity and a difference payment corresponding to the difference between the pre-determined Strike Price ('SP') and the Reference Price ('RP') observed in the