The European Commission (Commission) has approved, subject to conditions, Luxembourg's Compensation Fund (Fund) arrangements for the organisation of its electricity market. The Fund is intended to share between consumers and distributors the additional costs associated with the obligation to purchase electricity produced from renewable energy sources or cogeneration (green electricity). Earlier, the Commission opened a formal investigation following concerns about the benefit to certain consumers and the payments made to electricity producers. The Commission also examined whether there was any discrimination towards imported green electricity. Following modifications to the scheme, these concerns have been resolved.