The European Commission has analysed the emergency intervention measures introduced last year by Member States to deal with high energy prices, in a report presented to the EU Council on Monday 5 June. It noted that the measures to reduce electricity demand, the cap on inframarginal revenues and the rules for setting retail prices have helped to calm European energy markets, alongside the other emergency proposals adopted in 2022.
Firstly, the Member States have indicated that they have largely complied with the binding target of reducing electricity consumption by 5% at peak times.
With regard specifically to the implementation of the cap on inframarginal revenues, this has varied greatly from one Member State to another in terms of the level of the cap and its duration. The report also notes that “the increased stability of the gas and electricity markets means that prices have regularly fallen below the revenue cap”.
Finally, 12 out of 25 EU countries have extended the scope of retail price regulation in times of crisis to SMEs and applied below-cost price regulation under certain conditions.
In view of developments of the electricity markets and the stabilisation of gas prices from the record levels reached last year, the Commission confirms that it will not be proposing to extend these crisis measures.
In addition, the report notes that some aspects of these rules have been included in proposals for longer-term structural adjustments to the design of the electricity market (see EUROPE 13141/1).
To see the Commission’s report: https://aeur.eu/f/79d (Original version in French by Pauline Denys)