The second session of interinstitutional negotiations on the electricity market design took place in the late afternoon of Thursday 17 November and focused on a number of points considered to be less controversial in the negotiations, namely Power Purchase Agreements (PPAs), day-ahead and forward markets, aspects linked to consumption/retail markets and energy sharing, as well as flexibility provisions.
At this stage, few of these points have been finalised, “not because of disagreement” between the co-legislators, explained a parliamentary source close to the dossier, but because certain details require further discussion at a technical level before returning to the table for political negotiations between the institutions in December. According to another source, this December meeting could be conclusive.
PPAs
On the subject of PPAs, more political discussions still need to take place. However, the EU Council has examined the European Parliament’s request to focus on PPAs for renewable energy support.
Day-ahead and forward markets
As regards the day-ahead and forward markets (including peak shaving), it was decided that the reference to an entity selected by the Transmission System Operators (TSOs) and market operators designated to manage the coupling of the ‘ahead’ and day-ahead electricity markets will be removed, as proposed by Parliament.
The two institutions also share the structure for the introduction by the Member States in 2026 of a day-ahead inter-zonal gate closure time closer to real time for the electricity market, with a possible derogation from its application until 1 January 2029 at the request of the TSOs and with the authorisation of the national regulatory authorities (NRAs).
For the design of the EU forward market, Parliament envisaged that the Commission would assess the impact of the various tools designed to improve the ability of market players to hedge price risks and that an implementing act to detail the specific measures and tools would enable this objective to be achieved. The EU Council Presidency decided to be flexible on this point, whereas the EU Council envisaged the virtual hub as the model to follow.
Consumer/retail markets
As regards the right to electricity price contracts, a compromise could be found on the European Parliament wanting to have a derogation for electricity suppliers from the obligation to offer fixed-price contracts and a clause on the modification or unilateral termination of electricity contracts by suppliers.
It was also decided to include ‘stress tests’, if necessary, for national regulatory authorities (NRAs) to ensure that electricity suppliers have adequate risk hedging strategies in place.
Energy sharing
Regarding energy community and energy sharing projects, positions are still divergent between the three institutions with Parliament wanting to extend the possibility of energy sharing to all customers, to apply 100 kW as the threshold above which apartment blocks are not subject to the obligations of energy suppliers (as opposed to 50 kW for the EU Council) and to make 20% of the energy shared by projects belonging to public authorities accessible to vulnerable customers.
The provisions governing flexibility (article 19c to 19f) were also discussed, as well as access tariffs, congestion income and aspects relating to information by Transmission System Operators (TSOs)(TSOs) and Distribution System Operators (DSOs).
To view the 4-column document: https://aeur.eu/f/9mi (Original version in French by Pauline Denys)