Brussels, 25 July 2024
On 14 March 2023, the European Commission proposed a reform of the EU electricity market to reduce price volatility for consumers and incentivise investment in low-carbon energy. The reform included two legislative proposals – on electricity market design (EMD) and on protection against wholesale energy market manipulation (REMIT).
One aim was to improve consumer protection by increasing the availability of fixed-price contracts, enhancing supplier obligations and incentivising energy communities, self-consumption and renewable energy sharing. Another aim was to encourage the use of more long-term instruments such as power purchase agreements and contracts for difference, and to improve integration and liquidity in forward markets.
Additionally, the reform sought to enhance flexibility solutions, such as demand response and storage, while also improving market monitoring and transparency, and protection against manipulation. The REMIT Regulation and the EMD acts were published in the Official Journal of the EU on 17 April and 26 June and entered into force on 7 May 2024 and 16 July 2024 respectively.
Source – © European Union, 2024 – EP: Briefing – Improving the design of the EU electricity market – 25-07-2024