UK’s Tempus Energy sues Poland over power capacity market

Britain’s Tempus Energy has lodged a challenge in the European Union’s General Court against the European Commission’s approval of a multi-billion euro Polish scheme to pay energy firms to provide back-up power, the company said on Friday.

Poland last year held its first so-called capacity auction under the scheme aimed at avoiding electricity shortages, awarding contracts to companies such as PGE and Tauron.

A spokesman for the European Commision told reporters at a briefing on Friday that “the commission will be defending its decision in court”.

Tempus Energy was successful last year in a challenge against the European Commission’s approval of Britain’s power capacity market. Payments under Britain’s scheme have been suspended since the November ruling pending further investigation.

Tempus has objected to the schemes saying they amount to subsidies for fossil fuel generators and discriminate against technology designed to cut electricity demand during peak times.

Poland generates most of its electricity from coal-fired power plants but aims to reduce it 60 percent in 2030 from around 80 percent now.

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