The EU institutions failed to reach a compromise on the revised regulatory framework for the electricity market during the night of Wednesday 5 to Thursday 6 December in Brussels. A final trilogue is scheduled for 18 December to try to overcome differences concerning capacity mechanisms and regulated prices (see EUROPE 12138).
There is a strong desire within the three institutions to reach a successful conclusion on 18 December. Wednesday’s trilogue discussions lasted for twelve hours, without agreement being reached on capacity mechanisms.
Capacity mechanisms make it possible to compensate electricity producers for keeping production capacity at the levels needed to cope with peak consumption levels.
The European Commission has proposed forcing these capacity mechanisms to comply with an emission limit of 550 grams of CO2 per kilowatt-hour, a threshold that will de facto preclude state aid to coal-fired power stations. The maximum value has been accepted by both the Council and the Parliament. What is under discussion is the date from which the maximum value will apply to power stations that participate in capacity mechanisms.
The central question was when to stop subsidies, a source said. In 2018/2019, Poland plans to enter into subsidy contracts with coal-fired power stations that may last for up to 15 years. According to MEP Florent Marcellesi (Greens/EFA, Spain), these proposals would enable authorisation of state aid to existing coal-fired power plants until 2035! The position of the Parliament is clear: the 550g limit will apply to new power stations as soon as the regulation comes into force, and a transition period of five years has been agreed for existing plants.
Regulated energy prices are the other sensitive issue. The Austrian Presidency does not have a mandate to set a date for removing regulated tariffs, however. The Parliament proposed a final date 10 years hence, while at the same time maintaining regulated tariffs for vulnerable households.
The negotiations have already made it possible to compromise on the time after which consumers have the right to change supplier (24 hours), on the definition of active consumers, on meters and on local energy communities. (Original version in French by Lionel Changeur)