THE European Union reached an agreement today to reform the bloc’s electricity market in a bid to reduce dependence on fossil fuels and stabilise consumer prices, the EU Council said in a statement.

“Today, the council and parliament reached a provisional agreement to reform the EU’s electricity market design (EMD),” said a statement released by the presidency of the EU Council, currently held by Spain.

“The reform aims to make electricity prices less dependent on volatile fossil fuel prices, shield consumers from price spikes, accelerate the deployment of renewable energies and improve consumer protection.”

The EU’s plans were aimed at making the market less vulnerable to volatility and were seen as a response to Russia’s invasion of Ukraine, which sent energy prices spiralling for consumers and businesses last year.

“This deal is great news, as it will help us reduce even more the EU’s dependence on Russian gas and boost fossil-free energy to cut greenhouse gas emissions,” Spain’s Energy Minister Teresa Ribera said.

The deal must be endorsed and adopted by both the council and parliament.

Part of wider reforms, the deal includes a regulation that will improve the EU’s protection against market manipulation through enhanced monitoring and transparency, also known as Remit.

The 27 member states reached a provisional agreement on Remit on November 16.

Today’s agreement would see states given the “possibility to exclusively support” the acquisition of new renewable generation, in line with member countries’ decarbonisation plans, the statement said.

The deal empowers the council, which represents members, to declare a union-wide “crisis” based on market conditions.

This could be “related to the average wholesale electricity price or a sharp increase in electricity retail prices”, the statement said.

The deal would see the tightening of measures to “protect vulnerable and energy poor customers”, it added. – AFP, December 14, 2023.