25 Oct 2019 11:28
25 October 2019
PLUTUS POWERGEN PLC
("Plutus", the "Group" or the "Company")
Statement on Capacity Market EC ruling
Plutus PowerGen (AIM: PPG), the AIM quoted power company focused on the development and operation of flexible energy generation ('FlexGen') projects in the UK, is pleased to note the European Commission's ruling on Thursday 24th October 2019, that the UK's electricity back-up system, known as the Capacity Market, does not break EU state aid rules.
The Capacity Market enables power generators, such as Plutus, to bid for contracts to provide emergency electricity during peak demand to prevent blackouts. It was frozen in November 2018 when the European Court of Justice stopped member states from providing state aid, or subsidising companies, without approval from the European Commission. Thursday's ruling will see the Capacity Market resume its role as a tool for ensuring security of supply of electricity and enable the Government to pay the energy providers the £1bn they are owed.
The European Commission said that the Capacity Market "is necessary guarantee security of supply in Great Britain, is in line with EU energy policy objectives, and does not distort competition in the Single Market".
Commenting on the ruling, Lawrence Slade, Chief Executive of industry body Energy UK, said, "The Capacity Market can now continue to do the job it has done successfully for a number of years, ensuring security of supply at the lowest cost to customers in times of high demand." He continued, "The Capacity Market has been rightly evolving to reflect a different mix of energy generation with newer technologies gaining a greater share in recent auctions. With the inclusion of renewables in future auctions - something we have long called for - a technology-neutral CM will continue along this path and drive progress towards a net-zero economy bringing benefits for both the environment and the economy, while reducing costs for customers."
**ENDS**
For further information, please visit www.plutuspowergen.com, or contact:
Plutus PowerGen Plc | +44 (0) 20 8720 6562 |
Charles Tatnall, Executive Chairman | |
Allenby Capital Limited (Nominated Adviser and Joint Broker) | +44 (0)20 3328 5656 |
Nick Athanas James Hornigold | |
Turner Pope Investments (TPI) Limited (Joint Broker) | +44 (0)20 3657 0050 |
Andy Thacker | |
St Brides Partners Limited (Financial PR) | +44 (0)20 7236 1177 |
Isabel de Salis |
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