Tempus Energy, a British company whose goal is to cut consumer energy bills by helping them use cheaper power, has launched a legal challenge against the United Kingdom government in response to the capacity market, a scheme that’s designed to make sure there’s always enough back-up to meet peaks in electricity demand, according to Carbon Brief.
The challenge was submitted to the European General Court on Thursday on the grounds that the scheme violates State Aid rules by prioritizing energy that’s generated by burning fossil fuels over cheaper and cleaner efforts to reduce demand, according to Express and Star. European Union rules require subsidies to be in line with European goals, such as combatting climate change, according to Engineering and Technology.
“The Capacity Market was originally set up to keep the lights on at the lowest possible cost; a format that has been used very successfully in the US,” said Sara Bell, the CEO of Tempus Energy, as quoted by Click Green. “But an engrained, institutional bias in favor of building new assets to boost supply means that cost effective ‘no build’ technologies for managing demand have been ignored.”
“This will push up electricity bills needlessly and commit consumers to paying for capacity that we would not need if we invested in building demand-flexibility, for those who want to use it.,” Bell continued, adding that “the lack of commitment to innovation from the Government will stymie investment and therefore the advancement of a smart industry that could fundamentally transform our energy economy.”