October 6, 2015 / 10:21 AM / 3 years ago

Spain watchdog warns coal subsidies may break EU rules

MADRID, Oct 6 (Reuters) - The Spanish competition watchdog (CNMC) has warned a planned subsidy for coal-fuelled power plants may not be environmentally justified and could infringe European regulation that prohibits discrimination between generating technology.

The government plans, which aim to subsidise the sector by around 30 million euros ($34 million) a year, can cause serious distortions in the Spanish power market and should be presented to Brussels as possible state aid before being approved, the regulator said.

The government has proposed subsidies for the use of nationally-mined coal in an effort to support production and avoid coal mine shutdowns. ($1 = 0.8920 euros) (Reporting by Robert Hetz; Writing by Paul Day)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below