Russia’s full-scale invasion of Ukraine created the energy crisis in 2022, pushing prices to new highs. For example, the European Power Benchmark for electricity stood at €339/MWh on average in the third quarter of 2022, up 222% year-on-year.
High prices, the security of energy supply and the need to increase decarbonisation led the European Commission to propose a reform of the electricity market on 14 March 2023.
In September 2023, the European Parliament gave the green light to the start of negotiations on the reform with the Council.
Stronger consumer protection against volatile energy prices
“With this agreement, Parliament puts citizens at the centre of the design of the electricity market, prohibiting companies from cutting the power of vulnerable and at-risk consumers, promoting the right to share energy, reducing price spikes and promoting affordable prices for citizens and companies,” said Nicolás González Casares (S&D, Spain), the MEP in charge of steering the new rules on the reform of the electricity market design through Parliament.
MEPs propose to further strengthen consumer protection against volatile prices. Consumers should have the right to fixed or dynamic price contracts, as well as more information on the options. The aim is to make prices stable and to mitigate the impact of sudden price shocks.
MEPs also want EU countries to prohibit suppliers from cutting the electricity supply of vulnerable customers or requiring them to use prepayment systems.
Discussion about this post