TIDMPPG

Plutus PowerGen PLC

25 October 2019

25 October 2019

PLUTUS POWERGEN PLC

("Plutus", the "Group" or the "Company")

Statement on Capacity Market EC ruling

Plutus PowerGen (AIM: PPG), the AIM quoted power company focused on the development and operation of flexible energy generation ('FlexGen') projects in the UK, is pleased to note the European Commission's ruling on Thursday 24(th) October 2019, that the UK's electricity back-up system, known as the Capacity Market, does not break EU state aid rules.

The Capacity Market enables power generators, such as Plutus, to bid for contracts to provide emergency electricity during peak demand to prevent blackouts. It was frozen in November 2018 when the European Court of Justice stopped member states from providing state aid, or subsidising companies, without approval from the European Commission. Thursday's ruling will see the Capacity Market resume its role as a tool for ensuring security of supply of electricity and enable the Government to pay the energy providers the GBP1bn they are owed.

The European Commission said that the Capacity Market "is necessary guarantee security of supply in Great Britain, is in line with EU energy policy objectives, and does not distort competition in the Single Market".

Commenting on the ruling, Lawrence Slade, Chief Executive of industry body Energy UK, said, "The Capacity Market can now continue to do the job it has done successfully for a number of years, ensuring security of supply at the lowest cost to customers in times of high demand." He continued, "The Capacity Market has been rightly evolving to reflect a different mix of energy generation with newer technologies gaining a greater share in recent auctions. With the inclusion of renewables in future auctions - something we have long called for - a technology-neutral CM will continue along this path and drive progress towards a net-zero economy bringing benefits for both the environment and the economy, while reducing costs for customers."

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

 
                                               +44 (0) 20 8720 
 Plutus PowerGen Plc                            6562 
 Charles Tatnall, Executive Chairman 
 
 Allenby Capital Limited (Nominated Adviser    +44 (0)20 3328 
  and Joint Broker)                             5656 
 Nick Athanas 
  James Hornigold 
 
 Turner Pope Investments (TPI) Limited         +44 (0)20 3657 
  (Joint Broker)                                0050 
 Andy Thacker 
 
 St Brides Partners Limited (Financial         +44 (0)20 7236 
  PR)                                           1177 
 Isabel de Salis

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END

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October 25, 2019 06:28 ET (10:28 GMT)

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