The European Commission presented, this Tuesday, the proposal to reform the architecture of the European electricity market. Among the measures is, for example, “price regulation” in crisis situations.
Brussels intends to accelerate renewable energy and at the same time reduce the use of gas for electricity production.
Energy Commissioner Kadri Simson hopes the proposal will also bring cheaper energy, even though the energy cost formation model remains as it is.
“The reform will not change the mechanics of price formation in the short-term market, but that does not mean that this decoupling between electricity prices and gas prices has not been achieved, because by making the final prices they pay consumers more independent of short-term prices, forward prices (…) is one of the most important aspects for the political proposal of this reform”, he said.
The commissioner believes that the objective of reducing the bill can also be achieved with the use of clean energy. For this reason, one of the intentions of the proposal is to “bring more renewable energy and flexibility to the market to displace fossil fuels and changing the way in which new investments are made in inframarginal generation.” [de energias renováveis] They are really paid.”
Kadri Simson assumes that “volatile near-term price developments will no longer largely determine consumer prices”, even if the energy market remains as it is.
“We are keeping market fundamentals unchanged. Thus, the design of short-term markets remains the most efficient in ensuring that the cheapest and greenest technologies are used first and the current design guarantees this,” he said, too. leaving “the guarantee that there will be trade between member states at the time of scarcity”.
The proposal to reform the architecture of the European energy market will now enter the discussion process between the European Parliament and the Council of the EU, so that it can enter into force in the coming years.
Updated news at 4:26 pm
Source: TSF
