Proposal for a Regulation amending Regulations (EU) 2019/943 and (EU) 2019/942 as well as Directives (EU) 2018/2001 and (EU) 2019/944 to improve the Union’s electricity market design

Summary:

Legislative initiative tabled by the European Commission on 14 March 2023, introducing amendments to Regulation (EU) 2019/942, Regulation (EU) 2019/943, Directive (EU) 2018/2001 and Directive (EU) 2019/944 to improve the European Union's (EU) electricity market design. This is a text with EEA relevance.

Further information:

Regulation (EU) 2019/942 updated the role of the EU Agency for the Cooperation of Energy Regulators (ACER). Regulation (EU) 2019/943 and Directive (EU) 2019/944 updated the regulatory framework governing the internal electricity market. Directive (EU) 2018/2001 seeks to promote the growth of the share of renewable energy in the final consumption.

Energy prices increased significantly in 2021 and 2022. They were rapidly felt by households, industry and businesses across the EU, and governments sought to address them. At an EU-level, a Toolbox was provided to tackle high prices, in particular for the most vulnerable consumers, as well as the REPowerEU action plan comprising further measures and funding to boost energy efficiency and renewable energy. This was followed by the creation of a temporary State Aid regime to allow certain measures to soften the impact of high prices, among other measures. All together, the measures helped Member States to deal with the immediate impact of the energy crisis. However, the crisis also highlighted the lack of resilience to energy price spikes. For this reason, the President of the European Commission announced in September 2022, during her State of the European Union (SOTEU) address, the need for a fundamental reform of the electricity market design.

The proposal was adopted by the European Commission on 14 March 2023 as part of a legislative package seeking to reform the EU's electricity market design.

• Primary Source

Official

EUR-LEX: SWD(2023)58: Staff Working Document accompanying the Proposal - Reform of Electricity Market Design https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2023:58:FIN

European Commission: Topics: Electricity market design https://energy.ec.europa.eu/topics/markets-and-consumers/market-legislation/electricity-market-design_en

European Commission: Press Release, 14/03/2023: Commission proposes reform of the EU electricity market design to boost renewables, better protect consumers and enhance industrial competitiveness https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1591

European Commission: Questions and Answers on the revision of the EU's internal electricity market design (14 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1593

European Commission: Opening remarks by Commissioner Simson at the press conference on the reform of the EU's electricity market design (14 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_1658

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