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

Author Details	(Compiler)
Author (Corporate)	Cardiff EDC
Publication Date	2023
Content Type	Blog & Commentary, News, Overview
	Summary: Information Guide concerning the legislative packaged tabled by the European Commission on 14 March 2023 to reform the European Union's (EU) electricity market. Further information: 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: 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 Regulation amending Regulations (EU) No 1227/2011 and (EU) 2019/942 to improve the Union’s protection against market manipulation in the wholesale energy market Commission Recommendation on Energy Storage – Underpinning a decarbonised and secure EU energy system
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? https://fsr.eui.eu/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) https://fsr.eui.eu/the-eu-in-a-hard-gas-crisis-what-reform-of-its-internal-electricity-market-part-ii/ 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 https://caneurope.org/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 https://www.reuters.com/business/energy/europes-draft-plan-cushion-power-price-spikes-2023-03-07/ 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? https://www.ceps.eu/ceps-publications/in-the-time-we-have-left-how-can-we-realistically-reform-the-eus-electricity-market/ Centre for Economic Policy Research (CEPR): VoxEU, 09/03/2023: The European Commission’s proposal to reform electricity markets https://cepr.org/voxeu/columns/european-commissions-proposal-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? https://www.iddri.org/en/publications-and-events/blog-post/reform-european-electricity-market-small-steps-revolution Politico, 13/03/2023: The race is on to reform the EU’s power market https://www.politico.eu/article/sustainability-green-energy-race-against-the-clock-as-eu-readies-power-market-reform/ Politico: Opinion, 15/03/2023: Europe is out of the immediate energy crisis https://www.politico.eu/article/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? https://www.bruegel.org/first-glance/eu-electricity-market-design-reform-too-quick-fix-complex-problem Euronews, 15/03/2023: EU electricity market reform: What exactly is a contract for difference? https://www.euronews.com/my-europe/2023/03/15/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? https://www.cer.eu/insights/will-eus-reform-retail-electricity-markets-help-consumers Fieldfisher: Insights, 07/03/2024: EU Electricity Market Design Reform https://www.fieldfisher.com/en/locations/belgium/insights/eu-electricity-market-design-reform News EurActiv: Special Reports: EU electricity market reform https://www.euractiv.com/section/electricity/special_report/eu-electricity-market-reform/ EurActiv, 17/01/2023: Need for speed as EU launches debate on electricity market reform https://www.euractiv.com/section/electricity/news/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 https://www.euractiv.com/section/electricity/news/eu-launches-debate-on-electricity-market-reform-amid-rising-consumer-bills/ EurActiv, 13/02/2023: Seven EU countries call for cautious electricity market reform https://www.euractiv.com/section/electricity/news/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 https://www.euronews.com/my-europe/2023/02/13/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 https://www.bloomberg.com/news/articles/2023-02-16/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 https://www.euractiv.com/section/electricity/news/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 https://www.bloomberg.com/news/articles/2023-03-07/eu-seeks-to-cut-power-price-volatility-in-draft-market-reform France24, 14/03/2023: EU unveils electricity reforms to reduce price spike threat https://www.france24.com/en/live-news/20230314-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 https://www.euronews.com/my-europe/2023/03/14/brussels-bets-on-long-term-contracts-to-reform-the-eu-electricity-market-eschewing-radical Reuters, 14/03/2023: EU to revamp power market, aiming to blunt price spikes https://www.reuters.com/business/energy/eu-revamp-power-market-aiming-blunt-price-spikes-2023-03-14/ RTÉ News, 14/03/2023: EU publishes proposed changes to electricity market rules https://www.rte.ie/news/business/2023/0314/1362226-eu-publishes-proposed-changes-to-electricity-market/ Associated Press (AP News), 14/03/2023: EU assesses new electricity plan in wake of energy crisis https://apnews.com/article/eu-electricity-energy-crisis-ukraine-fb85c300080e23f4938e1ce482d10f1c Official European Commission: Topics: Electricity market design https://energy.ec.europa.eu/topics/markets-and-consumers/market-legislation/electricity-market-design_en European Commission: Public Consultations: Electricity market – reform of the EU’s electricity market design https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13668-Electricity-market-reform-of-the-EUs-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 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 https://www.reneweuropegroup.eu/news/2023-03-14/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 https://www.europeansources.info/record/reforming-the-eu-electricity-market/
Subject Categories	Energy
Subject Tags	Energy Infrastructure, Energy Markets
International Organisations	European Union [EU]
Record URL	https://www.europeansources.info/record/?p=527673

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