Does support for new Dukovany comply with electricity market reform? Commission selects CfD rejected by government

The European Commission plans to support so-called contracts for difference in its proposal for a new electricity market. If a Member State decides to support new renewable or nuclear sources, that support should take the form of a so-called contract for difference, according to the electricity market reform proposal published by the European Commission today. However, the government has approved a different form of support for new sources in the Czech Republic – a so-called purchase agreement. The government rejected a contract for difference (CfD).

Preparations for rules governing the new electricity market have been completed at the European Commission. The core idea of the proposal is a modest shift away from a liberalised electricity market towards a more regulated market. This more regulated market should primarily ensure that the price shocks seen over the past 2 years are not repeated.

• We wrote about the European Commission's vision for the future electricity market here.