MEPs reached an agreement on the reform of the electricity market

MEPs reached an agreement on the reform of the electricity market
Katerina Belousova

The vote for the reform in the European Parliament should take place in September

MEPs have reached a broad agreement on the reform of the electricity market, which is designed to prevent a repeat of the 2022 energy crisis.

The new market structure will accelerate the surge in the use of renewable energy sources and the gradual abandonment of gas, according to Oilprice.com.

It is noted that the reform was proposed by the European Commission in March 2023.

Nicolas González Casares, the European Parliament's leading negotiator for the reform, emphasized that the agreement:

  • provides for a ban on disconnecting vulnerable consumers;
  • gives more rights to consumers;
  • provides a better emergency response mechanism.

The article explained that the reform is designed to protect consumers from market manipulation through the wholesale energy market.

"The energy crisis caused by Russia's invasion of Ukraine has highlighted the need for rapid adaptation of the electricity market to better support the ecological transition and provide energy consumers, both households and businesses, with broad access to affordable renewable and non-fossil electricity," the European Commission's statement said.

The press service of the EC stressed that the reform involves the revision of several EU legislative acts, in particular the Electricity Regulation, the Electricity Directive and the REMIT Regulation. It introduces measures that stimulate long-term contracts for the production of green electricity. In addition, the reform will reduce the impact of fossil fuels on consumer bills and ensure that the lower cost of renewable energy sources is reflected.

IN Oilprice.com. added that currently the proposals have been submitted to the Council of the EU and the European Parliament for discussion and negotiations.

The European Parliament's industry committee is expected to vote on a broad agreement between EP groups on July 19. A vote on the reform is due to take place in September, ahead of final negotiations with EU member states in the autumn.

Earlier, EcoPolitic wrote, that the EU countries were unable to agree on new rules for the reform of the electricity market due to the proposal to expand state support for coal energy.

As EcoPolitic previously reported, EU ambassadors reached an agreement on a landmark law on renewable energy after the European Commission agreed to exempt certain ammonia plants from targets for the use of renewable fuels.

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