Belgium, (Brussels Morning Newspaper) Spain, and the Netherlands have called for quick agreement on new rules for the EU’s power market, stressing the importance of reining in prices.
EU energy ministers have discussed plans to revamp the electricity market in Stockholm on Monday, but the bloc is split on proposed measures, according to Reuters reporting.
Some EU member states including Spain want the bloc to implement substantial changes to align the rules with the green push, while other EU countries including the Netherlands warn against implementing major changes on the bloc level.
Teresa Ribera, Spanish Minister for Ecological Transition and Demographic Challenge expressed the belief that “timing is key… sometimes, not being in time is a disaster.”
She called for adopting new rules before EU Parliament elections in 2024 and added that the rules could be part of a broader response to the green subsidies offered under the US Inflation Reduction Act.
Negotiations on bloc-wide rules can take upwards of two years as all EU member states and the EP have to approve changes.
“For the time being, the single element that makes the highest difference in terms of competitiveness between the US and Europe is the cost of energy,” Ribera noted.
Electricity prices spiked sharply last year as natural gas prices increased because gas-fired power plants usually set the price of electricity thanks to their ability to adapt their output to demand and plug holes in supply.
Bloc-wide rule changes
A group of EU member states headed by France and Spain proposed bloc-wide long-term fixed-price agreements with less polluting power plants, noting that the move would stabilize prices.
Rob Jetten, Dutch Minister for Climate and Energy Policy, noted that he is “very much in favor of a strong and fast process to make sure that this reform is delivered this year.”
He pointed out that EU member states agree on the planned transition towards renewable sources of energy, but warned against imposing one-size-fits-all rules on all bloc members due to the EU’s diversity. Jetten concluded that the EU should not adopt new electricity market rules that would force bloc members to structure their markets in the same way.
