The European Union (EU) has prepared a reform proposal to change the rules of the electricity market and expand the use of fixed-price electricity contracts in order to protect consumers from price hikes.
The European Union Commission has announced its reform proposal to increase renewable energy sources, protect consumers and increase industry competitiveness.
Accordingly, EU regulations, regulations and rules related to electricity will be changed.
Long-term contracts with non-fossil fuel generators will be encouraged.
To compete with natural gas, cleaner and more flexible system solutions will be introduced.
The impact of fossil fuels on consumers’ electricity bills will be reduced.
The lower cost of renewables will be reflected in consumers.
Increasing transparency and integrity in the electricity market.
Open and fair competition will be revived in European wholesale energy markets.
European industry will have access to affordable, renewable, non-fossil electricity for decarbonization and green transition.
More price stability will be achieved in renewable and non-fossil electricity generation. Consumers and suppliers will benefit from price stability.
Consumers would be offered contracts that set long-term prices
Consumers will be offered secure contracts and have the option to set long-term prices to avoid excessive risk and volatility. These contracts will be prepared in a more understandable language.
You will manage price risks to electricity suppliers within volumes under the fixed contract.
In the event of a crisis, member states will be able to regulate the electricity rates applicable to households and small and medium businesses. The poor in EU countries will be protected from power outages.
Consumers will be able to invest in wind or solar power. The electricity produced from the rooftop solar panels can be sold not only to suppliers but also to neighbors.
Member states will need to set targets and set up electricity storage programs to increase electricity production from fossil sources.
Electricity system operators will be able to take measures to reduce demand during peak hours.
In order to increase the competitiveness of the EU industry, it will be prevented from being exposed to unstable electricity prices. In this framework, it will be easier for companies to make long-term power purchase agreements.
Companies will be able to create their own direct energy supplies and use renewable energy at more stable prices.
General support for new investments in electricity generation from wind, solar, geothermal, hydroelectric and nuclear, CFDs will be entered into to pay the difference between the opening and closing prices of the contract as profit or loss. Member countries will direct additional revenues in this area to consumers.
Market liquidity will be increased by long-term contracts that set electricity prices. Thus, it will be ensured that the consumer and the supplier are protected from excessively fluctuating prices.
The EU Energy Regulatory Cooperation Agency and national regulators will have a broader mandate to ensure the integrity and transparency of the energy market.
The reform needs approval by the European Parliament and member states
In the current system, the wholesale price of electricity in the European Union is set by the final generator needed to meet total electricity demand, often by natural gas power plants that can run quickly.
The rapid rise in natural gas prices during the energy crisis last year destabilized this market, and record increases in electricity prices were seen.
The planned electricity market reform needs to be approved by the European Parliament and Member States in order to be implemented.
While countries like France and Spain want large-scale electricity market reform, a group of countries led by Germany opposes it.
As the President of the European Commission, Ursula von der Leyen shared on her social media account, “Consumers are at the center of our electricity market reform.” Use the phrase.
Von der Leyen states that the reform they have prepared will reduce the impact of natural gas on electricity bills and reflect the benefits of low-cost renewable energy to consumers.
- Balkans | Turkish athletes completed the Bulgarian Open Taekwondo Championship with ten medals
- Balkans | Albania suspends the golden passport scheme
- Balkans | The death toll in Syria, which was affected by the earthquakes that struck Kahramanmaraş, has risen to 1,602.
- Balkans | Macron and Scholz want to invest more in the defense industry of a powerful Europe
- Balkans | The 16th meeting of the EU-North Macedonia Association Council kicks off in Skopje
- Balkans | Bulgarian Prime Minister Donev: The government is making preparations for the elections within its mandate
- Balkans | Bulgaria denies accusations of “violence against migrants at the border”
- Balkans | The first convoy of search and rescue teams from Bosnia and Herzegovina to Turkey returned home.
- Balkans | A car caught fire in the center of Skopje
- Balkans | Students of different nationalities gathered together for the earthquake victims in Bosnia and Herzegovina