Spanish Supreme Court orders Escal UGS to return €210 million

The Spanish Supreme Court has upheld a ruling requiring Escal UGS, a company controlled by the ACS group, to return approximately €209.7 million related to the failed Castor underwater gas storage project. The decision follows a challenge by the company against a previous ruling by the National Court.

The dispute stems from a 2014 royal decree that provided compensation to project promoters after the facility was shut down due to seismic activity. However, the Constitutional Court later declared various provisions of that decree unconstitutional. Consequently, the National Commission on Markets and Competition (CNMC) reviewed the financial settlements for the 2014, 2016, and 2017 fiscal years, determining that the payments lacked legal coverage and demanding the reimbursement of the funds.

The Supreme Court's decision confirms that administrative acts based on laws subsequently declared unconstitutional can be reviewed officially when they lose their legal basis.