Disputes over nuclear energy are blocking talks on reform of the European electricity market

The European Parliament has given the Council of the EU the green light to begin negotiations on reform of the EU electricity market. However, the Council is currently deadlocked over disagreements, particularly between Germany and France. The main point of contention is the financing of nuclear energy. Spain, which holds the Council presidency, is actively trying to resolve the dispute and last week sent out its first official draft of the reform, reflecting previous discussions.

One of the aims of the planned reform of the European electricity market is to better protect consumers from price fluctuations in the markets. Among other things, the European Commission wants to prevent explosive increases in energy prices for consumers. According to the European Parliament's negotiating position, adopted this Thursday in Strasbourg, citizens should have the right to contracts with both fixed and dynamic prices.

The basis of the Parliament's position was the European Commission's original legislative proposal from March 2023, which proposed supporting, in particular, long-term contracts for electricity generated from renewable and nuclear energy. In mid-July, however, the European Parliament's Committee on Industry and Energy substantially amended the proposal, significantly restricting subsidies for the nuclear industry.