Europex assessment of the EMD review proposal

The Commission’s legislative proposal to review the EU Electricity Market Design (EMD) published on 14 March 2023 aims to respond to the ongoing energy crisis and act as a tool to accelerate the pace of the energy transition.

Europex welcomes that this proposal generally builds on the achievements of 25 years of successful electricity market integration, preserving the fundamentals of well-functioning short- and long-term markets, further incentivising the deployment of flexibility and improving consumers’ rights and engagement. However, we are concerned that some amendments seek to seriously alter parts of the existing short- and long-term markets with possible negative consequences for market efficiency and its ability to incentivise decarbonisation at least cost. We urge lawmakers to carefully assess these proposals to ensure that the EMD package is beneficial to the functioning of short-term markets, the liquidity of long-term markets and the deployment of flexibility assets.

In the attached document, we assess several crucial proposals and suggest improvements where appropriate.