Reform of the EU’s electricity market announced by the European Commission (2023)

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Publication Date 2023
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Information Guide concerning the legislative packaged tabled by the European Commission on 14 March 2023 to reform the European Union's (EU) electricity market.

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The proposals adopted by the European Commission seek to to accelerate a surge in renewable energy sources and the phase-out of gas, make consumer bills less dependent on volatile fossil fuel prices, better protect consumers from future price spikes and potential market manipulation, and make the EU's industry clean and more competitive.

The proposed reform foresees revisions to several pieces of the existing legislation. It introduces measures that incentivise longer term contracts with non-fossil power production and bring more clean flexible solutions into the system to compete with gas, such as demand response and storage. In addition, the draft laws seek to boost open and fair competition in the European wholesale energy markets by enhancing market transparency and integrity.

The set of proposals was adopted on 14 March 2023, and it was preceded by a public consultation launched in January 2023. The initiatives include the following draft laws:

Related Links
Commentary and Analysis
EUI: Florence School of Regulation (FSR): Opinion, 31/01/2023: The EU in a hard gas crisis: what reform of its internal electricity market?
EUI: Florence School of Regulation (FSR): Opinion, 03/02/2023: The EU in a hard gas crisis: what reform of its internal electricity market? (Part 2)
Climate Action Network (CAN Europe): Policy Briefing, 15/02/2023: Energy system of tomorrow: Reconsidering the European Electricity Market for a Flexible, Resilient, People-centred and Efficient System with 100% Renewables
Reuters: FactBox, 07/03/2023: Europe's plan for more stable electricity prices
Centre for European Policy Studies (CEPS): Explainer, 07/03/2023: In the time we have left, how can we realistically reform the EU’s electricity market?
Centre for Economic Policy Research (CEPR): VoxEU, 09/03/2023: The European Commission’s proposal to reform electricity markets
Institute for Sustainable Development and International Relations (IDDRI): Blog, 09/03/2023: Reform of the European electricity market: small steps before the revolution?
Politico, 13/03/2023: The race is on to reform the EU’s power market
Politico: Opinion, 15/03/2023: Europe is out of the immediate energy crisis
Bruegel: First Glance, 15/03/2023: EU electricity market design reform: too quick a fix for a complex problem?
Euronews, 15/03/2023: EU electricity market reform: What exactly is a contract for difference?
Centre for European Reform (CER): Insights, 19/04/2023: Will the EU's reform of retail electricity markets help consumers?
Fieldfisher: Insights, 07/03/2024: EU Electricity Market Design Reform

EurActiv: Special Reports: EU electricity market reform
EurActiv, 17/01/2023: Need for speed as EU launches debate on electricity market reform
Euractiv, 24/01/2023: EU launches debate on electricity market reform amid rising consumer bills
EurActiv, 13/02/2023: Seven EU countries call for cautious electricity market reform
Euronews, 13/02/2023: Seven EU countries oppose overhaul of electricity market, call for 'targeted' measures
Bloomberg, 16/02/2023: Europe to Unveil Electricity Market Reform Proposal on March 14
EurActiv, 28/02/2023: EU aiming for ‘targeted’ reform of electricity market, energy chief says
Bloomberg, 07/03/2023: EU Seeks to Cut Power Price Volatility in Draft Market Reform
France24, 14/03/2023: EU unveils electricity reforms to reduce price spike threat
Euronews, 14/03/2023: Brussels bets on long-term contracts to reform the EU electricity market, eschewing radical changes
Reuters, 14/03/2023: EU to revamp power market, aiming to blunt price spikes
RTÉ News, 14/03/2023: EU publishes proposed changes to electricity market rules
Associated Press (AP News), 14/03/2023: EU assesses new electricity plan in wake of energy crisis

European Commission: Topics: Electricity market design
European Commission: Public Consultations: Electricity market – reform of the EU’s electricity market design
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
European Commission: Questions and Answers on the revision of the EU's internal electricity market design (14 March 2023)
European Commission: Opening remarks by Commissioner Simson at the press conference on the reform of the EU's electricity market design (14 March 2023)
Renew Europe EP Group: Newsroom, 14/03/2023: EU's internal electricity market reform: more integration of the European energy system, flexibility and more effective mechanisms to shield vulnerable consumers

ESO Records
European Parliamentary Research Service (EPRS): Briefing, February 2023: Reforming the EU electricity market

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