16/07/24 (Agence Europe) – On Tuesday 16 July, the reform of the design of the electricity market (a directive and a regulation) came into force throughout the European Union. Adopted on 21 May by the EU Council (see EUROPE 13413/12), it aims to ensure more stable, predictable and sustainable prices on the European electricity market in response to the surge in prices resulting from the energy crisis that began in 2022 following Russia’s invasion of Ukraine. In particular, the reform introduces two-way contracts for difference (CfDs) as a “standard form” of public support for investment in decarbonised electricity generation, as well as long-term contracts known as PPAs. The reform was the subject of an interinstitutional agreement on 14 December 2023 (see EUROPE 13313/4). Links to the directive and regulation published in the Official Journal of the EU: https://aeur.eu/f/d1l ; https://aeur.eu/f/d1m (PLD)