Enedis, SA v Axa Corporate Solutions SA and Ombriere Le Bosc SAS (Order) French Text [2017] EUECJ C-515/16_CO (15 March 2017)

Enedis, SA v Axa Corporate Solutions SA and Ombriere Le Bosc SAS (Order) French Text [2017] EUECJ C-515/16_CO (15 March 2017)

A national mechanism obliging the purchase of solar electricity at above-market prices, financed by final consumers, constitutes intervention by the State or through State resources under Article 107(1) TFEU. If such a measure is State aid and was not notified to the Commission as required by Article 108(3) TFEU, national courts must draw all consequences of this illegality, including regarding the validity of implementing acts.

Citation
[2017] EUECJ C-515/16_CO
Parties
Applicant: Enedis SA; Respondent: Axa Corporate Solutions SA; Respondent: Ombrière Le Bosc SAS
Jurisdiction
European Union
Judgment Date
15 March 2017
Procedural Posture
Preliminary Reference / Order on Preliminary Questions
Outcome
Preliminary questions answered; national mechanism is State intervention; national courts must draw consequences of non-notification.
Legal Topics
State Aid, Electricity Market, Obligation to Purchase Renewable Energy, Notification to European Commission, Compensation for Public Service Obligations
European Union Law State Aid Law Energy Law State Aid Electricity Market Obligation to Purchase Renewable Energy Notification to European Commission Compensation for Public Service Obligations

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Parties

Enedis SA

Applicant

Axa Corporate Solutions SA

Respondent

Ombrière Le Bosc SAS

Respondent

Procedural Posture

Preliminary Reference / Order on Preliminary Questions

Legal Issues

  1. 1 Whether a national mechanism obliging the purchase of solar electricity at above-market prices, financed by final consumers, constitutes 'State aid' under Article 107(1) TFEU.
  2. 2 Whether failure to notify such a measure to the European Commission under Article 108(3) TFEU affects the validity of implementing acts.

Ratio Decidendi

A national mechanism obliging the purchase of solar electricity at above-market prices, financed by final consumers, constitutes intervention by the State or through State resources under Article 107(1) TFEU. If such a measure is State aid and was not notified to the Commission as required by Article 108(3) TFEU, national courts must draw all consequences of this illegality, including regarding the validity of implementing acts.

Court Disposition

Preliminary questions answered; national mechanism is State intervention; national courts must draw consequences of non-notification.

Orders

  • Article 107(1) TFEU applies to the national mechanism in question as State intervention.
  • Article 108(3) TFEU requires national courts to draw all consequences of non-notification, including on validity of implementing acts.