The Electricity Market Design reform is an opportunity to future-proof the regulatory framework to enable the decarbonisation of the European economy. Indeed, the European answer should be meticulously assessed and strengthen the conditions to foster investments in renewable and other technologies needed to reach carbon-neutrality and improve energy efficiency. This would ensure an affordable energy transition by channelling the benefits of these investments more directly to all European consumers, including energy intensive industries and households as well as Small and Medium sized enterprises and municipalities.
The EU´s Electricity Market Design must contribute to the above-mentioned objective by:
- Preserving the benefits created by the present internal energy market, including wholesale prices which reflect the best use of all available capacities in Europe, greater security of supply and large-scale integration of renewable energy;
- Enhancing the customer contracting and engagement framework by enabling sufficient possibilities for short and long-term hedging as well as enabling and rewarding their flexibility;
- Strengthening investors’ confidence to ensure the necessary investments in renewable and other technologies needed to achieve carbon-neutrality, while also keeping the system in balance, fostering sector integration, and contributing to security of supply.
Strong, efficient, and transparent markets with improved liquidity in longer maturities and empowered demand will help secure electricity supply at predictable and more stable cost for consumers. On behalf of some of the major European energy trade associations, the co-signatories urge the European Commission to consider the following recommendations when elaborating its legislative proposal: