UK power stocks surged on reports that the European Commission is set to reinstate a multibillion-pound scheme called the GB capacity market — the main government policy for “keeping the lights on”. As part of the scheme, the UK government pays energy companies extra to prevent blackouts by making sure there is enough reliable electricity supply during times of high demand. So far it has paid out almost £6 billion in contracts, but the EU, which approved the market in 2014, reversed its decision last year while it investigated concerns that it breached rules on state aid. According to reports, the commission is set to announce a final decision soon, possibly later this month, which would confirm the compliance of the British plan. Payments which…

Source: The Times October 04, 2019 23:12 UTC