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Brussels aligns itself with Ribera for the reform of the European electricity market

Date: June 8, 2023 Time: 10:31:32

The European Commission (EC) has launched this Monday a public consultation on the document for the reform of the European electricity market. In it, he welcomes the implementation of tools that encourage long-term energy purchase contracts in order to “guarantee that the energy bills of consumers and companies (and the income of inframarginal generators) are more independent of the fluctuation of prices in the markets in the short term (often driven by the costs of fossil fuels).

Brussels acknowledges “deficiencies” in the current design and now hopes to seek input from governments, industry and consumers. The process will be open until February 13 and the Commission plans to submit the proposal for modification in March. “Market design

Spain has already presented its proposal and is going through a design that is based on a “very liquid and transparent” short-term market (daily and intraday), combined with a forward market for energy and capacity and flexibility services adapted to the needs specific to each Member State.

“In this context of energy crisis, the current design of the electricity market has shown a series of deficiencies. On a sufficient scale as an essential enabler of the European objectives of the Green Deal and of the transition to a climate neutral economy by 2050”, points to the document.

Sources from the Ministry for the Ecological Transition demand that, in a context of high volatility in electricity prices, stable term instruments are required that provide income for infra-marginal producers, as well as affordable and little changing prices for consumers. Spain will work together with France so that their proposals for the reform of the European electricity market converge towards a common position and the new model is approved before the end of this year.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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