European Parliament approves reform of the EU electricity market
Kyiv • UNN
The European Parliament approved the reform of the EU electricity market aimed at reducing the dependence of electricity prices on fossil fuel prices, accelerating the introduction of renewable energy sources and protecting consumers from price spikes.
The European Parliament has approved the proposed reform of the EU electricity market, which, in particular, should reduce the dependence of electricity prices on volatile fossil fuel prices and accelerate the deployment of renewable energy sources. UNN writes about this with reference to the European Parliament's portal.
Details
433 MPs supported the reform, 140 voted against it, and 15 abstained.
It is noted that the reform is aimed at protecting consumers from price hikes, accelerating the introduction of renewable energy sources and improving consumer protection.
The European Commission, which presented the proposal, states that the market reform aims to make the EU energy market more resilient and make the electricity bills of European consumers and companies more independent of the short-term market price of electricity.
According to the proposal adopted by the European Parliament, vulnerable consumers will be protected from power outages, including during disputes between suppliers and consumers.
According to the draft law, which still needs formal approval by the EU Council to become law, in the event of very high prices and under certain conditions, the EU can declare a regional or pan-European electricity price crisis, allowing member states to take temporary measures to set electricity prices for small and medium-sized enterprises and energy-intensive industrial consumers.
The reform will also allow the use of so-called contracts for difference (CfD), or equivalent schemes with the same effects, in all investments in new electricity generation, regardless of whether it is renewable energy or nuclear power, the European Parliament said.
The Parliament has taken a step forward in democratizing the energy sector by creating a market model that responds to the shortcomings revealed by the energy crisis. All consumers, including micro, small and medium-sized enterprises, will have access to long-term, affordable and stable prices
