How does the EU envision the future electricity market? Price regulation of generation also in play

On Tuesday, the European Commission published a call for feedback on selected aspects of its proposed changes to electricity market design. Tighter price regulation of electricity generation or retaining certain measures the EU introduced in response to the energy crisis are under consideration. The first draft regulation is due to be published as early as March this year.

The need to reform the electricity market has been discussed increasingly often as a result of the energy crisis (see the informative interviews on the SeznamZprávy website here or here). Experts have repeatedly criticised the market, arguing that the current electricity market setup is sufficient only in times of abundance, characterised by ample generation capacity and commodities. Now, as the energy crisis is easing again somewhat, the European Commission is considering how to reform the electricity market so that a similar energy crisis does not recur.

It was precisely to reform the electricity market that the European Commission launched a public consultation process. It is collecting feedback from market participants while providing a detailed explanation of the main changes that could be incorporated into the new electricity market design.