On Thursday 10 July, the Agency for the Cooperation of Energy Regulators (ACER) concluded that the use of peak-shaving products outside of electricity price crisis situations had more disadvantages than benefits. This is revealed by its impact assessment, backed up by a public consultation launched in March (see EUROPE 13605/21).
Under the new electricity market design rules adopted in 2024 (see EUROPE 13560/27), in the wake of the 2022 energy crisis, the Council of the EU can declare an EU-wide or regional crisis if wholesale electricity prices become excessively high. Member States can then order system operators to use these peak shaving products to reduce electricity demand.
ACER does not recommend changing the existing legal framework to allow the use of these products “under normal market circumstances”, pointing to reduced overall socio-economic benefits, distorted cross-border competition and weakened investment incentives for demand response and flexibility.
On this basis, it is up to the European Commission to decide whether or not to propose amendments to the regulation.
Analysis: https://aeur.eu/f/ht1 (Original version in French by Pauline Denys)