The EU is preparing a reform of the electricity market. Separation of the price of electricity from gas is being considered

The EU is preparing a reform of the electricity market. Separation of the price of electricity from gas is being considered
The EU is preparing a reform of the electricity market. Separation of the price of electricity from gas is being considered

In just one year, European electricity prices have risen almost tenfold. In a speech at the Bled Strategic Forum, the President of the European Commission, Ursula von der Leyen, said that the EU will intervene in the energy market. Although she did not share specific details, she is considering some steps.

Intervention and market reform

During an extraordinary meeting of European energy ministers in Bled, Slovenia, the President of the European Commission, Ursula Von der Leyen, announced that the European Union will intervene in the electricity market.

“Rising electricity prices now reveal that our current electricity market arrangements are limited for a variety of reasons,” Von der Leyen said, adding: “It was developed under completely different circumstances and for different purposes. That is why we are now working on emergency intervention and systemic reform of the electricity market.” According to her, the EU needs a new market model for electricity that will be truly functional, as the current one is not able to fulfill its purpose.

Member states are increasingly calling for the EU to cap electricity prices. The Czech Republic, currently presiding over the European Union, convened a meeting of energy ministers. An extraordinary meeting will be held on September 9 in Brussels, where an agreement on the proposed reforms should be reached.

“After a weekend full of meetings, I can announce that I am convening an extraordinary meeting of the Energy Council,” announced on Twitter the Minister of Industry and Trade Jozef Síkela. The minister talked about the need to “repair the energy market” at the EU level and had previously talked about the need for the union to separate gas prices from electricity prices.

During bilateral negotiations in Prague on August 29, German Chancellor Olaf Scholz stated that he would support the introduction of a price ceiling for the price of electricity. He also stated that the European Union will quickly reach an agreement. “We will be looking very carefully at what tools we have that we can use to reduce the price of electricity,” Scholz said. “This is not something that should happen by chance, it has to work in a technical sense, but what is now being set as the market price is clearly not a true reflection of supply and demand,” he added.

Separation of gas from electricity

According to The Brussels Times, the European Commission is considering capping gas prices in the event that Russia cuts off supplies or prices become unbearable. “Overall, I can perhaps state that, for example, decoupling electricity prices from gas prices is one of the avenues that can be considered,” Chancellor Scholz said. The European Commission has been commissioned to develop an analysis on such a possibility.

This content is locked

Log in to an account with an active subscription to view.

The article is in Czech

Tags: preparing reform electricity market Separation price electricity gas considered

PREV Commodities: Oil prices add over three percent on a weaker dollar
NEXT After twenty years, it’s finally here: the much-requested Windows Explorer feature | Chip.cz