EU attacks Germany on renewable energy policy

Competition Commissioner Mario Monti threatens to start an investigation into a German law promoting renewable energy. According to German newspaper Handelsblatt, the Commission wants to initiate a state aid investigation into a piece of German legislation which is one of the cornerstones of the SPD-Greens coalition.

The Commission’s competition DG takes issue with the fact that state-owned electricity suppliers will have to buy eco-electricity at high prices. According to Monti’s top lawyers this comes down to the transfer of state funds and is thus illegal subsidisation for the promotion of renewable energy.


The German ökostrom (eco-electricity) legislation foresees that private electricity consumers as well as municipal and regional suppliers of the so-called eco-electricity will have to pay a very high minimum price.


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