At the ‘Energy’ Council on Tuesday 28 March, a first wide-ranging debate on the reform of the electricity market took place. Presented by the European Commissioner for Energy, Kadri Simson, the text gathered reactions, points of attention and proposals for adjustment from the 27 European Energy Ministers.
The Commission’s proposal on the reform of the electricity market, published on 14 March (see EUROPE 13141/1), was welcomed by the majority of Member States in this debate as a way to combat price volatility, strengthen the competitiveness of the industry and give a positive signal to investors by focusing on improving the long-term market.
While the Czech Minister of Industry and Trade, Jozef Síkela, called the reform “an evolution and not a revolution”, he, like a majority of Member States, welcomed the measures taken to strengthen market stability and predictability, as well as clear rules on consumer protection.
The aim of the reform in the long term will be to enable consumers to benefit from lower average costs of renewable energy as it is introduced into the system.
In this context, some Member States such as the Czech Republic, Poland and Finland have called for more flexibility on the scope of two-way CfDs (contract for differences) and insisted on the importance of technological neutrality. “Nuclear energy is a zero-emission energy source”, insisted Finnish State Secretary Ann-Mari Kemell. “It should be viewed in this way, in the support mechanism, like other renewable energy sources”.
Some Member States, such as Portugal, Spain, Luxembourg and the Netherlands, have also expressed concern that these guaranteed price contracts could “represent a market subsidy” and create distortions and increase energy consumption.
Furthermore, Denmark and Finland have asked for more flexibility in the use of CfD revenues as they consider the current scope to be “restrictive”.
Others, such as Portugal, have expressed concern that interconnections within the market are not yet sufficiently developed.
Belgian Energy Minister Tinne Van der Straeten said the reform was “a patchwork of different proposals” that called for more clarity between the old and new market instruments.
After the debate, the Commissioner for Energy was optimistic about the outcome: “Things should move forward quickly in the EU Council and I hope that there will be a general approach under the Swedish Presidency”.
Ebba Busch, the Swedish Minister for Energy, provided assurances that the EU Council and the Parliament will make the reform of the electricity market a priority so that the new rules come into force before next winter. (Original version in French by Pauline Denys)