Members of the European Parliament have validated the provisional agreements reached with the Council of the EU on the reform of the European electricity market (see EUROPE 13329/5), which includes a regulation (433 votes in favour, 140 against and 15 abstentions) and a directive (473 votes in favour, 80 against and 27 abstentions).
Although some MEPs had expected a more far-reaching reform of the electricity market following the surge in energy prices in 2022, and were specifically calling for a definitive decoupling of electricity prices from gas prices, a majority welcomed the reform in the debate that precedes the vote.
Patrizia Toia (S&D, Italian) felt that this was another step towards achieving a true Energy Union, but that it was important within the EU “not to squabble over access to energy resources”.
Pilar del Castillo Vera (EPP, Spanish), for her part, highlighted the objective of achieving more stable and predictable electricity prices, as well as the boost given to the development of renewable energies. She also noted that the Iberian solution – derogation regime for Spain and Portugal until the end of 2024 that permits a cap to be placed on the price of gas used in electricity production – should be rejected.
In broader terms, the aim of the reform is to protect consumers against price volatility by giving them the right to access fixed-price contracts or dynamic-price contracts, as well as protecting vulnerable consumers from cuts in supply.
It also encourages the use of ‘Contracts for Difference’ (CfDs) and authorises them for all investments in new electricity generation, irrespective of whether they are renewable or nuclear.
The reform also includes a mechanism for declaring a crisis in electricity prices.
Before the vote, the European Commissioner for Justice, Didier Reynders, explained that once the texts had been adopted it was necessary to ensure proper monitoring and the “smooth” implementation of the measures, providing for implementing acts and a series of technical rules.
The rapporteur, Nicolás González Casares (S&D, Spanish), was delighted that the European Parliament had managed in record time to take “another step towards democratising energy, by creating a market that responds to the shortcomings that have been revealed by the energy crisis”.
The Council of the EU still has to formally validate the agreement.
To see the adopted texts: https://aeur.eu/f/bqd (Original version in French by Pauline Denys)