PreussenElektra AG v Schleswag AG
A national law requiring electricity suppliers to buy renewable electricity produced locally was a restriction on trade, but was justified by the protection of the environment.
Facts
German law required electricity supply companies to buy electricity produced from renewable sources in their area of supply, at fixed minimum prices. PreussenElektra, a German electricity company, argued that this was contrary to the Treaty rules on state aid and on free movement of goods, because it favoured German producers of renewable electricity.
Legal principle
The Court of Justice held that the scheme was not state aid, because it did not involve the transfer of state resources, and that, although the purchase obligation was capable of hindering trade in electricity between Member States, it was compatible with article 34. The Court took into account the aim of protecting the environment, by reducing greenhouse gas emissions, and the particular nature of electricity, which makes it difficult to determine its origin once it is in the network. The decision was controversial, because the measure was distinctly applicable but was treated as justifiable on environmental grounds.
Related cases on free movement of goods
- Commission v Denmark (Danish bottles) Case 302/86, [1988] ECR 4607
- Commission v France (Spanish strawberries) Case C-265/95, [1997] ECR I-6959
- Commission v Germany (Beer purity) Case 178/84, [1987] ECR 1227
- Commission v Ireland (Buy Irish) Case 249/81, [1982] ECR 4005
- Commission v Italy (Art treasures) Case 7/68, [1968] ECR 423
- Commission v Italy (Motorcycle trailers) Case C-110/05, [2009] ECR I-519
- Conegate Ltd v HM Customs & Excise Case 121/85, [1986] ECR 1007
- Deutscher Apothekerverband eV v 0800 DocMorris NV Case C-322/01, [2003] ECR I-14887
Studying EU Law? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.
This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
