![Improving the design of the EU electricity market [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2023/04/EPRS-Briefing-745694-Design-EU-electricity-market-FINAL.png?fit=1000%2C666&ssl=1)
Written by Agnieszka Widuto (3rd edition, updated on 12.01.2024).
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 (REMIT).
The reform would improve consumer protection by offering more fixed-price contracts and enhancing supplier obligations, and incentivising energy communities, self-consumption and renewable energy sharing. It would support the use of more long-term instruments such as power purchase agreements and contracts for difference, and improve 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.
The European Parliament voted on both files during its September 2023 plenary session. Interinstitutional negotiations on REMIT concluded in an agreement on 16 November, and those on EMD on 14 December 2023. The agreed texts now need to be formally adopted.
Versions
- January 2024: Improving the design of the EU electricity market (3rd edition)
| (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) | 14.3.2023 (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: Final first-reading votes in plenary |
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