On Thursday, the European Union successfully concluded an agreement to reform its electricity market, aiming to decrease reliance on fossil fuels and bring stability to consumer prices. Spain’s energy minister announced the achievement, emphasizing the goal of transitioning toward a more sustainable energy landscape within the EU.
Yesterday, the Council and the Parliament reached a provisional agreement to reform the EU’s electricity market design (EMD), stated Teresa Ribera, Spain’s energy minister, whose country currently holds the EU’s rotating presidency.
“The reform aims to make electricity prices less dependent on volatile fossil fuel prices, shield consumers from price spikes, accelerate the deployment of renewable energies, and improve consumer protection.”
Both co-legislators have reached an agreement to grant the Council the authority to declare a crisis based on a proposal from the Commission.
Furthermore, the provisional agreement outlines the criteria for declaring a crisis, specifically related to the average wholesale electricity price or a significant surge in electricity retail prices.
Regarding the measures to be implemented by member states once a crisis is declared, both institutions have concurred on considering the existing option to further decrease electricity prices for vulnerable and disadvantaged customers, as outlined in the current electricity directive. Additionally, provisions aimed at preventing unwarranted distortions or fragmentation in the internal market have been incorporated.