The EU Are Never Happy

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Despite claiming to be greener than green and seeking to close down all the coal-fired power stations in Europe, the EU are still not happy.

The UK plans to support the conversion of the Lynemouth coal power plant to operate entirely on biomass – something you would imagine the EU would welcome, but no.  Now they are planning an in-depth investigation to see if the UK government support for the project breaks state-aid regulation.

the Commission therefore has concerns that the actual rate of return could be higher than the parties estimate and could lead to overcompensation.

And more…

The Commission is therefore also concerned that on balance the measure’s negative effects on competition could outweigh its positive effect on achieving EU 2020 targets for renewable energy.

Unbelievable.

EU Green Law Added 40 Euro Cents/Barrel to Refining Costs

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Refining margins are tight – we all know that.  With spot prices falling things will ease a bit, but it doesn’t help when politicians decide that Big Energy is a handy cash cow in times of austerity.

This report outlines how EU energy policy is hitting refiners in Europe.

EU green energy law added 40 euro cents a barrel to costs for Europe’s refineries, but the decisive factor in undermining their competitiveness was a steep rise in energy costs, preliminary European Commission research has found.

No kidding!

And get this …

Energy costs in the EU rose four-fold in 2000 through 2012, compared with a doubling elsewhere in the world, where prices overall were held back by the rise in U.S. shale production.

So when politicians tell you that the EU is good for business, or that they will freeze prices as a solution to the problem, be very suspicious.