Green Forum • 22 May, 2024 at 9:00 AM
The Commission European welcomes the adoption of significant reforms in the electricity and gas markets, along with a new regulatory framework aimed at advancing hydrogen and other decarbonized gases.
These reforms underscore Europe's commitment to the clean energy transition, enhancing supply security, and consumer protection, and incorporating lessons from the energy crisis.
Future-ready energy markets will drive investments in clean energy and lead to lower, more stable prices, boosting the global competitiveness of European industries. With the revised electricity market design and the decarbonized gas and hydrogen package, the EU is better equipped to meet its energy and climate goals under the European Green Deal. The updated gas market framework allows Member States to reduce or cease imports of piped gas and LNG from Russia and Belarus, aligning with the REPowerEU objectives.
The electricity market reform offers consumers more contract choices and clearer pre-contract information. Consumers can opt for secure, long-term prices or dynamic pricing contracts to take advantage of cheaper electricity periods. Member States must establish last-resort suppliers to ensure no consumer is left without electricity. Vulnerable and energy-poor consumers will be protected from disconnection, and regulated retail prices can be extended to households and SMEs during crises. Energy sharing is also bolstered, enabling tenants to share surplus rooftop solar power with neighbors.
The reform will help European businesses remain competitive by providing more predictable energy costs. It promotes the use of longer-term market instruments like Power Purchase Agreements, two-way Contracts for Difference, and forward contracts, offering investment certainty for power producers and industrial consumers. Households and companies will benefit from lower renewable energy costs, facilitated by new provisions on grid congestion, trading deadlines, demand response, and storage, along with EU-level auctions.
To ensure competitive markets with transparent price-setting, the Agency for the Cooperation of Energy Regulators (ACER) and national regulators will have enhanced capabilities to monitor energy market integrity and transparency.
A Cleaner and More Secure European Gas Market
The new gas market framework will support the adoption of renewable and low-carbon gases, ensuring energy security and affordability for all Europeans. The reforms will establish a hydrogen market, crucial for reducing emissions in hard-to-abate sectors like heavy industry and transport. The Commission will also launch a five-year project under the European Hydrogen Bank to connect hydrogen demand and supply, enhancing market development and transparency.
Consumers will gain better protection against supply and price risks, with greater empowerment to choose cleaner supplies and contracts. They will be able to switch suppliers more easily, use effective price comparison tools, receive accurate and transparent billing, and access new smart technologies and data.
Following today's adoption, the revised legislation will be published in the Official Journal of the Union, with its provisions coming into force according to specified timelines.