Tag Archives: legal

Greenpeace Energy to launch legal challenge to UK nuclear subsidies Updated for 2026





German green power supply company Greenpeace Energy (GPE) will take legal action against the European Commission because it has approved State aid worth billions for the building of the UK’s new Hinkley Point C nuclear plant.

According to GPE, the nuclear subsidy “threatens to distort competition in the European Union against genuine clean energy” and “could act as precedent and further undermine the EU energy market.”

“Highly subsidised nuclear power from this plant will noticeably distort European competitiveness. It will have an effect on prices at the power exchange in Germany as well”, says Sönke Tangermann, GPE’s managing director.

“This effect will have economic disadvantages for committed green power providers like us, and that’s why we are going to court.”

He adds that GPE will file a plea for annulment at the European Court of Justice in Luxembourg “as soon as the Commission’s State aid approval is published in the EU’s Official Journal and the period prescribed for bringing an action begins.”

Austria is also expected to launch a legal action against the Hinkley C subsidies – in the face of menacing threats from UK diplomats that the UK would “embrace any future opportunity that arises to sue or damage Austria in areas which have strong domestic political implications.”

Far higher subsidies to nuclear than to renewables

Last October the EU Commission approved State aid for the new build of two nuclear reactors at Hinkley Point in Somerset. GPE estimates that the immediate subsidy is worth about €22 billion, or £16 billion.

However the picture is complex as the aid package includes an inflation-proof generation subsidy of £92.50 per MWh for 35 years, construction guarantees, limits on liability for decommissioning, and a low accident liabilty cut-off. Other analysts believe the true cost as far higher and could amount to £30 billion or more.

The generation subsidy alone guarantees Hinkley’s power a wholesale price of £92.50 per MHh, double the market price, or 9.25p per unit – equivalent to almost 13€c. Adding all the elements together, says GPE, “The resulting subsidy is far higher than that for wind or solar power in Germany.”

It’s also much higher than renewable energy subsidies in the UK. Last week the UK government awarded contracts to renewable energy generators under its new ‘contracts for difference’ (CFD) auction. Typically wind generators were bidding £82.50 per MHh, and solar generators came in even lower, at £79.23 per MWh and £50 per MWh.

Also the contracts are for only 15 years – as opposed to the 35 years for Hinkley C – and contain no additional support or guarantees. The entire CFD package for new renewable energy capacity is limited to just £50 million per year, rising to £65 million in future years.

As reported on The Ecologist, the effect of the UK’s energy policy will be to almost kill off the flourishing solar sector, reducing the rate of new solar build from 2,000-3,000 MWh per year, to an estimated 32MW.

Many critics believe that the government is cutting back on renewables that are increasingly competitive against fossil fuels as prices rapidly drop, to make way for far higher-priced nuclear power.

Hinkley threatens to distort the entire European market

An expert opinion commissioned by Greenpeace Energy from analysts Energy Brainpool shows that Hinkley Point C will lead to a shift in price levels in the European electricity market.

The opinion explains that lower prices for electricity at the power exchange in Germany will discriminate against those suppliers that procure green power at fixed prices directly from plant operators in the framework of the German Renewable Energies Act.

“Unlike the claims of Prime Minister Cameron, a new reactor built at Hinkley Point, supported by billions of taxpayers money, is not a purely British affair, but directly disadvantages us as a German enterprise active in the European electricity market”, says Tangermann.

Due to the price effects of Hinkley Point C, the costs of the system laid out in Germany’s Renewable Energies Act (EEG) to foster renewables are likely to rise because the operators of renewable energy plants – with fixed feed-in tariffs – would in future have to be paid a larger difference in the electricity price at the power exchange.

This would probably cause a small increase in the renewable energy surcharge, while “the strain it would put on the EEG system is an outrage”, says Tangermann.

Will Hinkley corner European Investment Funds?

GPE’s other fear is that Hinkley, and other nuclear projects elsewhere in Europe, could grab a huge share of the European Investment Fund presented by Jean-Claude Juncker, president of the EU Commission, when it enters into force.

The UK has already applied for €46 billion to fund Hinkley C and two other nuclear power stations from the projected €315 billion fund, and this could be essential as other potential funders have withdrawn. Poland is also applying for €12 billion for new nuclear build.

Moreover, the EU intends to massively extend cross-border power lines, meaning the negative effect of this development, as calculated by Energy Brainpool, would be reinforced on a massive scale.As such GPE sees in the approval of State aid for Hinkley Point C a precedent for other nuclear projects that will hugely distort Europe’s energy market, says Tangemann:

“If the Commission’s approval goes unchallenged, then Hinkley Point C is just the tip of the iceberg, which is why we are calling on the German government to take legal action against the unfair State aid approval for Hinkley Point C. It must not open the door to other hazardous and absurdly expensive nuclear power projects in Europe.”

Germany’s biggest independent energy co-op

GPE is Germany’s largest national, independent energy cooperative, supplying clean power to more than 111,000 customers, of which about 9,000 are businesses. It is organised as a cooperative with 23,000 members whose contributions provide a solid equity capital base.

Through its subsidiary Planet Energy it also builds its own power plants, and has 11 wind farms (see photo) and three photovoltaic plants totalling 65MW are already in operation.

GPE has appointed Dr. Dörte Fouquet at the Becker Büttner Held law office, specialists in this area, to prepare the application for the plea for annulment and assist in subsequent proceedings.

In coming weeks, Greenpeace Energy will also review the possibility of joining forces with other stakeholders in Germany’s energy market for bringing legal action as a collective.

 


 

Principal source: Greenpeace Energy.

Oliver Tickell edits The Ecologist.

 




390968

Fracking: MPs and Lords have derelicted their legal duties – now they must pay the price! Updated for 2026





On 13th January, just before the Parliamentary Committee on the Infrastructure Bill was to report back to the House of Commons, I put every single MP in the UK (and more recently, all the Lords with a policy interest in Energy and the Environment) on legal notice.

The point I made in my ‘Letter before Action’ was that if they passed the Bill with the clauses promoting 1. economic recovery of petroleum; and 2. fracking; and if harm ensued thereby, they might find themselves in breach of their moral and legal duty to the nation set out in The Code of Conduct for Members of
Parliament
.

Among other obligations it reminds MPs that they “have a general duty to act in the interests of the nation as a whole; and a special duty to their constituents”, and that they must “take decisions solely in terms of the public interest”, the latter obligation also applying to members of the House of Lords.

As public servants both MPs and Lords are, moreover, “accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.”

So what about the risks of fracking?

I also sent them the introduction and executive summary of this document detailing the risks and harms of fracking – a document instrumental in New York State’s decision to ban the practice last December.

I sent the 657 letters by recorded delivery (it took the local post office 10 hours to process), so even if the MPs didn’t even look at them, from a legal point of view those letters will have been deemed as read.

Interestingly, a flurry of amendments to the Bill ensued, mitigating the clauses allowing fracking and even calling for a moratorium. Was this a complete coincidence, or did some of our elected representatives check with their lawyers and find that the Code of Conduct for MPs holds weight in a civil court?

I have taken legal advice from a barister and it does, in case you’re wondering.

I received a number of replies from MPs, many saying they had passed the information to my own MP, Neil Carmichael (Conservative), according to “strict Parliamentary protocol”.

This made me wonder: did the industry lobbyists who clearly had a major hand in drafting the Bill also get asked to make contact only via their own MPs? Either way, no MP can now legally deny prior knowledge of the risks and harms of fracking.

The public and national interest trampled underfoot

The Commons proceeded to significantly amend the fracking clauses in the Bill, and if their amendment 21 had stood, fracking would not have been permitted in AONBs, SSSIs, National Parks, under aquifers, etc, and drilling companies would have had to go through a number of procedures in order to frack including individual notification of local residents.

However, the Lords replaced this amendment in short order, doing two things:

  • watering down the safeguards proposed by the Commons so as to make them toothless and dependent upon secondary legislation; and
  • applying those weakened safeguards only to fracking using over 1,000 cubic metres of fluid, meaning that all exploratory and potentially even medium scale production could escape the safeguards altogether.

The Lords made these replacement amendments at the final ‘ping pong’ stage of the bill, and the Commons were assigned a paltry 1 hour’s discussion to address them. The Commons vote showed that MPs were now strongly divided about fracking (257 in favour of the Lords amendments, 203 against), but the amendments were still passed.

Only Caroline Lucas MP (Green) pointed out the farcical nature of these phantom safeguards, but there was no time to explore further. The following morning on 12th February, with truly unseemly haste, the Bill was made law.

We now have a situation where, by law, drilling companies can frack wherever they like with no special permission, as long as they use less than 1,000 cubic metres of fluid – about the volume of a large municipal swimming pool.

To our knowledge, all fracks carried out to date in the UK have used significantly less. Certainly what this means is that all future drilling that uses less than 1,000 cubic meters of fluid is exempt from all the safeguards drafted.

Goodbye ‘Green and Pleasant Land’

Reading the Hansard scripts of the discussions that took place on this Bill, we don’t think any of those in favour of the Act that was passed have a clue what fracking actually looks like in production. They seem to be chatting about a well or two here or there, nothing to disturb a national park … do they really not know? It requires hundreds of wells, four to every square mile, to make a viable production facility.

This government has an aggressive expansion policy to put in place up to 30,000 wells. Goodbye ‘green and pleasant land’! Use Google Earth to have a look at Texas or North Dakota and you’ll pretty soon get the idea.

 

Then – health hazards aside – there are the thousands upon thousands of HGV journeys required to service the site. And the disposal of the millions of gallons of toxic waste from the process. This is not easy, cheap, abundant gas and oil. It’s an expensive post-apocalyptic nightmare and an environmental disaster.

Not only that. One clause of the Infrastructure Act remained virtually unchallenged from start to finish, and that is a clause adjusting the Petroleum Act 1998, apparently making it a legal obligation for the Government to “maximise the economic recovery of UK petroleum” and for the relevant Secretary of State to create a strategy for doing this in whatever way he sees fit.

A legal duty to maximize petroleum recovery

This clause is so astonishing that it bears printing in full:

PART 1A

Maximising economic recovery of UK petroleum

9A The principal objective and the strategy

(1) In this Part the “principal objective” is the objective of maximising the economic recovery of UK petroleum, in particular through-

(a) development, construction, deployment and use of equipment used in the petroleum industry (including upstream petroleum infrastructure), and

(b) collaboration among the following persons-

(i) holders of petroleum licences;

(ii) operators under petroleum licences;

(iii) owners of upstream petroleum infrastructure;

(iv) persons planning and carrying out the commissioning of upstream petroleum infrastructure.

(2) The Secretary of State must produce one or more strategies for enabling the principal objective to be met.

(3) A strategy may relate to matters other than those mentioned in subsection (1)(a) and (b).

This appears to be no less than a legal mandate to fill the coffers of Halliburton, oil infrastructure supplier par excellence, and other industry players, with a clause to cover the arse of any Secretary of State who implements this.

Our Government has effectively just passed the ‘Support Halliburton’ Act 2015, with a few subsections making it easy to frack, and a bunch of transport, planning and other elements thrown in for infrastructural support and general confusion.

How exactly is this in the ‘national interest’ or that of constutuents? Isn’t the real national interest the health and happiness of the inhabitants of this country and the land we live on? Shouldn’t all economic activity be serving that, not vice versa? Is this not the true legal mandate of anyone in public service?

Anyone in either House who supported this corrupt, dangerous and ridiculously rushed piece of legislation has acted in blatant contravention of their legally-binding Code of Conduct, and failed miserably in their duty of care. We must prepare to sue.

 


 

Jojo Mehta is a mother of two young children based in Nympsfield, Gloucestershire, and a campaigner on environmental and democratic issues. Together with Katy Dunne, she is a co-founder of Frack Free Five Valleys.

 




390799

UK threatens Austria over Hinkley C legal challenge Updated for 2026





The UK Government is planning a suite of retaliations against Austria if it pursues its planned challenge in the European Court of Justice to the Hinkley Point C nuclear plant, according to a leaked document published by Greenpeace UK’s Energydesk.

In the leaked memo, sent from the Austrian Embassy in London to the Austrian government, a senior international diplomat warns:

“The UK has obviously started systematically elaborating countermeasures that could be harmful to Austria … Further steps and escalation ensuing the complaint are not to be ruled out.”

“The new Europe Director at the Foreign and Commonwealth Office, Vijay Rangarajan made clear that the Austrian plans to bring forth a complaint related to the EU State Aid Rules at the European Court of Justice (ECJ) has already shown a negative impact on the bilateral relations.”

There is a “strength of feeling” that goes “all the way up to PM Cameron”, it adds, “and the Prime Minister has instructed all the responsible members of government to call their Austrian counterparts.”

‘We will cause maximum damage to Austria’s interests’

According to the document, Rangarajan also made it clear that the UK would “embrace any future opportunity that arises to sue or damage Austria in areas which have strong domestic political implications.” Three specific points that are envisaged as first steps:

  • “A complaint before the ECJ against the labelling of electricity sources of the power provided by electricity suppliers, since, according to the British point of view, this violates the internal market rules.”
  • “An investigation of whether the Austrian complaint violates the Euratom Treaty.”
  • “Exertion of pressure for Austria – if it is not willing to recognise nuclear power as a sustainable energy source – to bear a greater share in the EU-internal effort sharing” on climate change.

On the face of it is hard to see how providing energy users with information on the source of the electricity they use would violate internal market rules, but as Greenpeace’s Christine Ottery explains: “As nuclear is so unpopular in Austria this in could effect mean Austria would go nuclear free.”

Faced with this onslaught of threats, the un-named Austrian diplomat insisted that “Austria was not under any circumstances interfering with the UK’s sovereign right to choose its own energy mix.”

Rather, they said, “the present case concerns a state aid-related complaint given that the Contract for Difference approved by the EC violates EU State Aid rules. It would be in the interest of rule of law principles that such a decision of the EC be appealed before the ECJ.”

The diplomat also “referred to the consensus of the Federal Government on the issue and to the respective resolution which was passed by parliament.”

Legal challenge imminent

Austria has made no secret of its intention to take legal action over the EU’s decision to allow £17.6bn of subsidies for two Hinkley C nuclear reactors under the bloc’s State Aid (competition) rules, and the legal papers are expected to be filed imminently.

The Hinkley C reactors are projected to provide 7% of the UK’s electricity by 2023 but Austria’s appeal could delay the UK government’s final investment decision by more than two years.

The news of the UK’s countermeasures coincides with the news that the final decision on the project will be delayed until months after the UK general election due to concerns from the projects’ Chinese backers about the creditworthiness of Areva, one of the partner companies involved in the Hinkley C project.

In a surprise decision, the European Commission decided to give the stamp of approval to the UK government’s massive subsidies for Hinkley’s new reactors in October last year.

The 35-year Hinkley subsidy deal, under Contracts of Difference, has been criticised for being poor value for money for UK bill payers with much of the money going to French and Chinese state-owned energy firms.

The subsidy is worth £17.6bn on paper, but a Greenpeace analysis put the total (undiscounted) subsidy to Hinkley over its lifetime as much higher at £37bn – working out as a £14 increase per household per year.

Austrian Chancellor (equivalent to prime minister) Werner Faymann came out against the European Commission approval of the Hinkley subsidy deal, saying: “Alternative forms of energy are worthy of subsidies, not nuclear energy.”

As for the efficacy of the UK’s threats, Fayman said last week that he will not back down over the legal action as nuclear is not “not an eligible new technology” eligible for State Aid, according to the Austrian newspaper Kronen Zeitung.

 


 

Principal source: Greenpeace EnergyDesk: ‘Energy Files: UK government threatens to strike back over Austria’s Hinkley legal challenge‘.

 




390157