EPP shapes agreement on new energy market rules

Late last night, negotiators from the European Parliament and Member States agreed on a revised design of the EU's electricity market. The new rules carry the signature of the EPP Group and ensure that no artificial price cap will be introduced.

"The EU’s internal energy market overall delivers huge gains and growth across Europe, but the current rules had some flaws which have contributed to price shocks leading to tripling or even quadrupling energy bills. With the new rules, we want to make the energy bills of consumers and businesses less dependent on short-term price fluctuations. Consumers will have better access to stable, low-cost and clean energy. In addition, the conditions to attract investment in energy were also reinforced, notably through the strengthening of contracts for difference and power purchase agreements,” explained Maria da Graça Carvalho MEP, the EPP Group's lead negotiator on the energy market design.

"A technology-neutral and market-based approach was our guiding principle. A cap on revenues from energy sources with lower marginal costs on inframarginal technologies was an absolute red line for the EPP Group because it would mean opening the door for an unacceptable interference in the markets, and it would be damaging for investment, especially in much-needed renewables. Our positions prevailed in the overall agreement; this agreement will improve the functioning of the electricity market for everyone, from consumers to industry,” Carvalho added.

The agreement still has to be confirmed by the Council and the European Parliament.