March 2. 2024. 1:10

The Daily

Read the World Today

Seven EU countries call for cautious electricity market reform


A group of seven EU countries has called on the European Commission to keep its upcoming reform of the electricity market “targeted” and focused on measures that will enable the green transition while ensuring affordable energy for consumers.

Electricity prices skyrocketed across Europe last year as Moscow turned off the gas tap in retaliation for EU sanctions imposed against Russia over its military aggression in Ukraine.

Pressed by EU governments to address this, the European Commission is currently preparing a review of EU electricity market rules, arguing that EU power markets need to be adapted to the “new realities of dominant renewables” and higher gas prices.

Spain and France were among the countries calling for a root-and-branch review of electricity market rules, but not all EU countries share this view.

In a joint letter, published on Monday (13 February), Germany, Denmark, Estonia, Finland, Luxembourg, Latvia and the Netherlands called for a cautious approach that preserves the current market setup.

“The integration of the EU electricity market over the last decade has brought enormous benefits for the EU, including lower wholesale prices, greater security of supply and enabling the large-scale integration of renewable energy,” says the joint letter.

Any reform, therefore, needs to be assessed on how it would contribute to these aims, the the seven countries argue.

“It should support a transition to a decarbonised system at the lowest possible cost to our societies and ensure that security of supply is always safeguarded while transitioning to a highly efficient renewable based energy system,” they say, adding this will benefit consumers and protect them from price peaks.

We urge @EU_Commission to propose a targeted EU electricity market reform that needs to