Reuters reported that an EU court ordered the European Commission recently to suspend a decision to let Spain assist its loss-making coal mining sector until 2015 after utilities in the country objected the plan would make them buy domestic coal.
The order is the second setback for the Spanish scheme, following a move by Spain High Court last week to suspend implementation of the coal aid plan for some days while it considers a final ruling.

A court spokesman said the Luxembourg based General Court, the second highest in Europe issued a provisional decision in response to requests for interim measures by utilities Gas Natural, Iberdrola and Endesa. The spokesman said "The Commission has to suspend its decision provisionally until the General Court issues a definite order."

The Spanish government plan which the EU accepted two months ago is to force utilities to burn domestic rather than imported coal. The utilities have appealed because imported coal is cheaper and of higher quality than coal mined at home.

Environmentalists say the plan undermines the Commission clean energy goals. The court usually takes two to three months to issue a definite order.

The EU executive said it was confident of its approval of the Spanish scheme.

Mr Jonathan Todd Commission spokesman said "The Commission considers that its decision of September 29 is legally sound. This is purely a routine stab."

The Commission accepted Spain argument that EU laws permit member states to prioritize domestic energy sources for producing up to 15% of national power supplies to ensure energy security.

(Sourced from Reuters)