National judges can't assess Italy’s negative incentive program, EU court rules

By Anna Ferrari ( August 1, 2025, 17:03 GMT | Insight) -- A negative incentive mechanism under Italy’s renewable energy support program can’t be reviewed by national courts, the EU’s top court ruled today, rejecting a referral in a dispute between hydroelectric operator Tiberis Holding and state-owned energy services provider GSE. The court reaffirmed that only the European Commission can assess state aid compliance. The ruling, which clarifies the legal treatment of clawback mechanisms linked to market prices, may serve as a pilot case with wider implications for other mid-sized producers operating under Italy’s renewables program.The EU’s top court rejected today a referral in a dispute between hydroelectric operator Tiberis Holding and state-owned energy services provider GSE, ruling that only the European Commission can assess the legality of Italy’s negative incentive scheme under state aid rules — not national judges....