In U-turn, Germany backs swift adoption of EU power market reform

(EurActiv, 23 Mar 2023) Ahead of an EU summit in Brussels, the German government signalled readiness to swiftly adopt the EU’s proposed electricity market reform, abandoning previous calls to delay decisions until after the 2024 European elections.

The European Commission tabled a reform of EU electricity market rules on 14 March, seeking to reduce the impact of volatile gas prices on electricity bills and accelerate the deployment of renewables.

The proposal does not question the current design of electricity markets based on short-term markets, defended by countries like Denmark, Germany and Luxembourg.

France had initially called for more radical reform, saying the current marginal pricing system is “absurd” because it leaves fossil fuels like coal and gas dictate the price of electricity.

“The proposal, which is still relatively fresh, is, of course, an ongoing issue in the European Council,” a senior German official told the press ahead of the EU leaders’ meeting on 23 March, adding that leaders were already discussing it.

At the heart of the Commission proposal are long-term contracts designed to ensure visibility to investors and lower electricity prices for consumers and industry.

External link

EurActiv, 23 Mar 2023: In U-turn, Germany backs swift adoption of EU power market reform