The European Commission has proposed reforms to the EU's electricity market design, with the aim of speeding up the shift to renewables, phasing out gas and reducing dependence on volatile fossil fuel prices, making consumer bills less reliant on fossil fuel prices, better protecting consumers from price spikes and market manipulation, and making the EU's industry more competitive and sustainable.
The proposed reforms include incentivising longer-term contracts with non-fossil fuel producers, and introducing measures to boost open and fair competition in the wholesale energy markets.
The reforms aim to enhance the competitiveness of EU industry, reduce its exposure to volatile energy prices and ensure access to renewable, affordable, and non-fossil fuel electricity. The reforms also aim to give consumers a wider choice of contracts, foster price stability, and protect vulnerable consumers from being disconnected. Finally, the reforms aim to boost liquidity in long-term contracts to protect suppliers and consumers against excessively volatile prices with Power Purchase Agreements.
The proposal will be now discussed by the European Parliament and the Council.
This reform is part of the Green Deal Industrial Plan, find out more here.