EU electricity market design reform: Step in the right direction

14 February 2023 - On the proposal for reform of the EU electricity market design reform, BusinessEurope Director General Markus J. Beyrer stated: "Step in the right direction"

"The European Commission’s proposal is a step in the right direction. BusinessEurope welcomes the Commission’s goal of supporting long-term contracting. This allows for more hedging opportunities for companies and reduces the influence of gas price swings on consumer prices. Mitigating the impact of high gas prices is a prerequisite for competitiveness.

The energy crisis has shown that access to abundant, affordable and clean energy is not a given. The EU needs a future-proof electricity market with clear long-term signals for investments to reach the ambitious European climate targets and at the same time guarantee security of supply. The Commission must do everything to maintain and attract a high-performance, low-carbon industry in Europe.

It is crucial that all existing barriers to Power Purchase Agreements (PPAs) are swiftly removed. PPAs can contribute to both decreasing the price volatility for consumers and ensuring that consumers purchase energy with profiles suitable to their needs. Contracts-for-Difference (CfDs) could serve an important role in ensuring sufficient investments for decarbonised generation. The proposed framework for CfDs needs to be thoroughly analysed."