On Wednesday 31 May, the Committee of Member States’ Representatives to the EU (Coreper) reviewed the Swedish Presidency’s proposals with a view to adopting a political agreement (‘general approach’) on the reform of the electricity market (see EUROPE 13190/7). According to several sources close to the matter, “it is quite realistic to think that there will be an agreement on 19 June”, at the next Energy Council.
Nevertheless, a number of differences remain. The “most political and blocking” point concerns the scope of two-way contracts for differences (‘CfDs’). Discussions must continue on whether or not they should be binding and on the redistribution of revenue.
Apart from countries such as France, Spain and Portugal, the majority of Member States are in favour of greater flexibility in relation to the Commission’s proposal, which some consider to be too prescriptive.
With regard to the price crisis decision-making mechanism, opinions are more divided on the activation criteria and the definition of the role of the EU Council or the Commission in decision-making.
The Presidency’s proposal on capacity mechanisms was generally welcomed. Member States are likely to opt for a combination of options. In any case, it is “too early” for an in-depth review to be carried out “without an impact study”, explained a source.
“Even those who are most eager for change could be satisfied with something intermediate [...] without fundamentally changing the core design of capacity mechanisms”.
These points will be discussed again at Coreper on 9 June. (Original version in French by Pauline Denys)