The European Parliament has approved electricity market reforms designed to lessen the impact of volatile fossil fuel prices and stabilise electricity prices for residents of member states.
The bill promotes longer-term contracts for electricity consumers that can help them avoid the price spikes witnessed following Russia’s invasion of Ukraine. Member states would be required to offer contracts for difference innational support schemes to be eligible to claim state aid, and the measures also allows for facilities pooling demand for corporate power purchase agreements.
It also gives the EU the power to declare a regional or bloc-wide "electricity price crisis", allowing member states to take temporary measures to set electricity prices for energy-intensive industrial consumers.
“The text includes measures to protect citizens, especially the most vulnerable and to accelerate the deployment of renewable energy sources. The [European] Parliament has taken a step forward in democratising energy, creating a market design that responds to the failures exposed by the energy crisis,” lead MEP Nicolás González Casares said.
The European Parliament and Council have already agreed the measures. The council now needs to formally approve them for them to become law.
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