EU member states and the European Parliament agree on electricity market reform

Negotiators from the Council of the European Union, representing the member states, and the European Parliament have agreed on a proposal to reform the electricity market. The EU Council announced the deal early this morning in a press release. The rule changes aim to strengthen market stability, protect consumers from sudden price swings and reduce Europe’s dependence on Russian gas. For the final proposal to enter into force, it must now be approved by both the member states and the European Parliament.

“This agreement is great news… as it will help, among other things, curb greenhouse gas emissions and support energy production independent of fossil fuels,” said Teresa Ribera, Spain’s minister for ecological transition, as Spain currently holds the rotating presidency of the EU Council.

On behalf of Czechia, Industry and Trade Minister Jozef Síkela backed the agreement in October, saying he expected it to bring greater “market resilience in the medium and long term, predictability of future energy costs and stronger competitiveness for our industry”.

The new measures should create a “buffer zone” between the market and consumers. Electricity suppliers will be required to offer customers contracts with fixed terms and fixed or dynamic prices, with the most important terms presented transparently and clearly.

Another new feature should be the possibility of declaring an extraordinary market situation, during which electricity prices for households and small and medium-sized enterprises can be regulated. This can happen only for a limited period and provided that ministers, on the basis of a European Commission proposal and subject to predefined conditions, approve the declaration of an EU energy price crisis.

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