European Commission approves State Aid to British Energy

The Commission approved the State Aid to British Energy subject to the implementation of accounting separation across businesses in September 2004. Frontier (London) advised British Energy on the application to the European Commission for exemption from rules on state aid with respect to the aid and restructuring package agreed between British Energy and the UK Government. In particular, Frontier analysed and provided expert opinion on the competitive effects of the aid on the wholesale and retail markets for electricity, undertook an assessment of generation and interconnector plant margins and assessed the effect of a range of compensatory measures. You can access the Commission's press release here.