Members' Research Service By / April 13, 2023

Improving the design of the EU electricity market [EU Legislation in Progress]

Energy prices have been rising since mid-2021, initially in the context of the post-Covid economic recovery.

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Written by Agnieszka Widuto (2nd edition, updated on 23.10.2023).

On 14 March 2023, the European Commission proposed a reform of the EU electricity market, with the aim of reducing price volatility for consumers and creating favourable conditions for investors in low-carbon energy. The reform includes two legislative proposals – one on electricity market design (EMD) and the other on protection against wholesale energy market manipulation. These two proposals revise five pieces of EU legislation.

The electricity market reform seeks to make the energy bills of consumers and businesses less dependent on short-term price fluctuations, which are often driven by fossil fuel prices. It also improves consumer protection by offering more fixed-priced contracts and enhancing supplier obligations, and incentivises solutions such as energy communities, self-consumption and renewable energy sharing.

The reform supports the use of more long-term instruments such as power purchase agreements and contracts for difference, and improves integration and liquidity in forward markets. It also enhances flexibility solutions such as demand response and storage. Furthermore, it aims to improve market monitoring and transparency, and protection against manipulation.

Both legislative proposals will now be negotiated by the European Parliament and the Council.


(A) Proposal for a regulation of the European Parliament and the Council 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
(B) Proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1227/2011 and (EU) 2019/942 to improve the Union’s protection against market manipulation in the wholesale energy market
Committee responsible:Industry, Research and Energy (ITRE)(A) COM(2023) 148
(B) COM(2023)147
Rapporteurs:(A) Nicolás Gonzáles Casares (S&D, Spain)
(B) Maria da Graça Carvalho (EPP, Portugal)
(A) 2023/0077(COD)
(B) 2023/0076(COD)
Shadow rapporteurs:(A) Maria da Graça Carvalho (EPP, Portugal); (B) Patrizia Toia (S&D, Italy); (A) Morten Petersen (Renew, Denmark); (B) Claudia Gamon (Renew, Austria); (A) Michael Bloss (Greens/EFA, Germany); (B) Jakop Dalunde (Greens/EFA, Sweden); Zdzisław Krasnodębski (ECR, Poland); Paolo Borchia (ID, Italy); Marina Mesure (The Left, France)Ordinary legislative procedure (COD)
(Parliament and Council on equal footing
– formerly ‘co-decision’)
Next steps expected: Conclusion of trilogue negotiations
Stage: Trilogue

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