Greenpeace and Ecotricity take Government to the High Court
Greenpeace | 22.11.2002 11:52
Greenpeace and renewable energy provider Ecotricity are taking the
Government to the High Court this Friday (22nd November) to lay out their
case for a Judicial Review of the Government's £650 million bailout of
failed private nuclear generator British Energy.
Government to the High Court this Friday (22nd November) to lay out their
case for a Judicial Review of the Government's £650 million bailout of
failed private nuclear generator British Energy.
Issued: Thursday 21st November 2002.
ADVISORY
Greenpeace and Ecotricity take Government to High Court over 'illegal'
British Energy loan.
Venue: Royal Courts of Justice on the Strand.
Date: Friday 22nd November, 2002.
Time: tbc (1).
Greenpeace and renewable energy provider Ecotricity are taking the
Government to the High Court this Friday (22nd November) to lay out their
case for a Judicial Review of the Government's £650 million bailout of
failed private nuclear generator British Energy.
In court lawyers for Greenpeace and Ecotricity will argue that the loan is a
clear breach by the UK Government of European Union law, which requires
member states to get EU approval before providing state aid to companies.
They will also argue that the loan is distorting the electricity market and
damaging renewable energy companies like Ecotricity.
If permission for a Judicial Review is granted and the resulting case is
successful, British Energy would be forced to repay the £650 million to the
British taxpayer.
The Government granted the first loan to British Energy on the 9 September.
It formally notified the Commission on the 11 September. The loan has still
not been approved. This is a clear breach of EC law and has been confirmed
as such by the European Commissioner, Mario Monti.
The DTI's own guidance booklet on European State aid rules appear to back
the legal case. It states 'Aid is illegal unless and until the Commission
has approved it. Companies placed in this situation risk having to repay the
illegal aid plus interest from the date of the first payment, and may also
face actions for damages from third parties. You should alert Ministers to
these risks at every stage' (2).
Several other power companies are reported to have complained to the
Commission about the bailout, as have the Belgian Government.
ENDS
(1) The start time and room are being confirmed this afternoon. Please call
the Greenpeace Press Office after 3pm Thursday for details.
Greenpeace Press Office: 0207 865 8255.
Ecotricity: Clare Summers 01453 769303.
(2) Source: DTI, 'European Community State Aids: Guidance for all
Departments and Agencies, June 2001'.
http://www.dti.gov.uk/europe/stateaid/guide/
ADVISORY
Greenpeace and Ecotricity take Government to High Court over 'illegal'
British Energy loan.
Venue: Royal Courts of Justice on the Strand.
Date: Friday 22nd November, 2002.
Time: tbc (1).
Greenpeace and renewable energy provider Ecotricity are taking the
Government to the High Court this Friday (22nd November) to lay out their
case for a Judicial Review of the Government's £650 million bailout of
failed private nuclear generator British Energy.
In court lawyers for Greenpeace and Ecotricity will argue that the loan is a
clear breach by the UK Government of European Union law, which requires
member states to get EU approval before providing state aid to companies.
They will also argue that the loan is distorting the electricity market and
damaging renewable energy companies like Ecotricity.
If permission for a Judicial Review is granted and the resulting case is
successful, British Energy would be forced to repay the £650 million to the
British taxpayer.
The Government granted the first loan to British Energy on the 9 September.
It formally notified the Commission on the 11 September. The loan has still
not been approved. This is a clear breach of EC law and has been confirmed
as such by the European Commissioner, Mario Monti.
The DTI's own guidance booklet on European State aid rules appear to back
the legal case. It states 'Aid is illegal unless and until the Commission
has approved it. Companies placed in this situation risk having to repay the
illegal aid plus interest from the date of the first payment, and may also
face actions for damages from third parties. You should alert Ministers to
these risks at every stage' (2).
Several other power companies are reported to have complained to the
Commission about the bailout, as have the Belgian Government.
ENDS
(1) The start time and room are being confirmed this afternoon. Please call
the Greenpeace Press Office after 3pm Thursday for details.
Greenpeace Press Office: 0207 865 8255.
Ecotricity: Clare Summers 01453 769303.
(2) Source: DTI, 'European Community State Aids: Guidance for all
Departments and Agencies, June 2001'.
http://www.dti.gov.uk/europe/stateaid/guide/
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