This case is concerned with a German electricity scheme and its compatibility with European Union law. The scheme requires distribution companies to buy electricity from renewable energy sources at a fixed minimum price.

One question brought forward to the European Court of Justice was whether the German law is compatible with the prohibition on state aid laid out in article 106(1) TFEU (previously article 92(1) TEC).

The court found that these state aid rules did not apply in this case, because the suppliers involved were privately owned.

Another question brought forward was whether the electricity scheme might be invalid in light of the free movement of goods of article 28 (previously article 30 TEC) TFEU, because it restricts cross-border trade. The court found that these restrictions on cross-border trade do exist, but that they are justified due to the German law’s goal of environmental protection.