05 December 2018 
Matt Sisson, Projects and Membership Manager
Universities, as large consumers of electricity, could see a change in their energy costs in the future as the result of the government losing a case with the EU over State Aid rules. The case, which you can read about in more detail on the TEC website, has forced the UK government to scrap its Capacity Market mechanism – the system of subsidies for energy companies to ensure backup power stations are online and generating electricity to meet peaks in demand from the grid.
Universities will need to keep an eye on the appeals process, and also on their own particular supplier and energy framework to understand how it might affect them. If the government loses its appeal, universities on flexible frameworks may receive rebates from their energy companies. In the longer term however, the costs could be passed on in price rises for major consumers.
