Clifford Chance
Lights Out in the Subsidy Control Challenges to the Bulb Energy Transfer
2 May 2023
The UK Divisional Court handed down its judgment on 31 March 2023 dismissing subsidy control claims against the UK Government's (HMG) transfer of the business of Bulb Energy Limited to Octopus Energy Group Limited. In addition to various public law challenges, the claimants challenged the legality of the subsidies provided by HMG.
The judgment provides useful insight into the framework that the Competition Appeal Tribunal (CAT) will likely also adopt for challenges under the new subsidy control regime. In particular, the Court's finding, if adopted by the CAT, that there should be a "light touch" review for subsidy control challenges will amount to a significant barrier that potential claimants may struggle to overcome. The judgment is also an important reminder to claimants to bring challenges promptly.
