Public consultations on EU electricity market design reform. launched European Commissionto better protect consumers from excessive price volatility, support their access to safe, clean energy, and increase market resilience.

As the Commission notes in its statement, the current system has created an efficient, well-integrated market for many years, allowing the EU to take advantage of the economic benefits of a single energy market, guaranteeing supply and advancing the decarbonization process. However, some shortcomings were identified in the system.

In particular, as the Commission emphasizes, in the current crisis of high and volatile electricity prices, the financial burden is being shifted to end-users. Therefore, reform is needed to better protect households and businesses from high energy prices, increase resilience and accelerate the transition envisaged by the European Green Deal and the REPowerEU plan.

“The EU electricity market has served us satisfactorily for over 20 years. However, the unprecedented energy crisis we are facing demonstrates the need to align the electricity market structure with the demands of the future so that it can deliver the benefits of affordable clean energy to all of us. I look forward to feedback from a wide range of stakeholders that will advance our legislative proposal this year,” said Country Energy Commissioner Simson.

As the Commission emphasizes, it is vital that all Europeans, from large industrial consumers to small and medium enterprises and households, benefit from the growth and low operating costs of renewable energy. At the same time, he notes that ensuring immediate access to affordable clean energy for all consumers will require market instruments to achieve more stable prices and contracts based on the real cost of energy production.

The consultation launched today will support the Commission’s work on a legislative proposal expected to be presented in the first quarter of this year. The consultations will run until February 13 and focus on four key areas:

1. Reduce the dependence of electricity bills on short-term fossil fuel prices and stimulate the development of renewable energy sources.
2. Improving the functioning of the market to ensure the supply and full use of alternatives to natural gas.
3. Strengthening consumer protection.
4. Increasing transparency and market surveillance.

^{With information from APE-MPE}