Contents

Conclusion

Essent Belgium vs Swedish

Essent Belgium Case

Background of EU Green Energy Scheme

Introduction

Essent Belgium CaseCJEU Joined Cases C-204/12 to C-208/12

Definition: Collective body of rules and regulations.

Concerned with the maintenance and protection of the natural environment of a country

Legal basis to measure active accountability of environmental crime

or any failure to comply with legal provisions.

• Green Certificates - Commodity to prove that electricity is generated by using Renewable Energy Sources

• Under the law of the Belgian region of Flander - Electricity suppliers required to submit Green Certificates to VREG annually - Failure to submit sufficient certificates can cause penalty

• Suppliers obtain certificates by having check and balance in electricity sources• Essent Belgium (a Flemish electricity supplier) submitted to VREG certificates

that they obtained from producing green electricity in Netherlands, Denmark and Norway

• Essent was fined approximately €1.5 million

Essent's Argument:"decision of penalty was a breach of EU’s principle of free movement of goods"The case was eventually referred to ECJ

Restriction on Free Movement of Goods:Reason: According to Article 30 ECJ"Restriction is justified by the public interest objective consisting in promoting the use of renewable energy sources"- To protect health, life of human,animals or plants- To protect the environment- To combat climatic change

German Energy Blog

Essent Belgium Case

The Luxembourg-based European Court of Justice

• The European Court of Justice (ECJ) declared a system of green certificates established in the Flemish Region of Belgium compatible with EU law

• Having been fined as green electricity certificates originating from other EU countries and Norway were not recognized under the scheme,

• Essent, a Belgium electricity supplier, brought a number of actions before the Belgian courts.

• The Court of First Instance in Brussels referred the matter to CJEU, asking whether the Flemish scheme was compatible with EU law.

"The Flemish green energy certificate scheme is compatible with EU law"• EU’s compatibility check in Two Green

certificates companies case

1 : Essent Company Case:o The company’s Green enegery certificates were

accepted by Flemish Belgian authorities and was fine with €1.5million ($1.94 million).

2: Swedish renewable subsidies Company• The European Corut of Justice(ECJ) Ruled the

case of Swedish renewable subisdies scheme is compatible with EU competition laws.

• Both the cases were same except one difference .

• The ECJ’s decision in the Belgian and Swedish cases took the energy industry by surprise

• It went against the initial opinion of the ECJ’s Advocate General Yves Bot.

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