EU Electricity Market Reform: Key Points

Detailed proposals to change EU energy law are ready to undergo the legislative process. What should we expect?

The Commission's consultation (which we looked at here) did not signal significant market redesign, but rather acceleration of the current direction of travel.

Stakeholder feedback was that short-term markets (day-ahead and intraday) and marginal pricing function well, provide the right price signals, are well-developed, and are the result of years of implementation of EU energy legislation.

Risk of high energy prices will instead be tackled by swifter delivery and integration of renewable energy, more efficient utilisation of the grid through increased use of flexibility services, and clearer and more regular communication around capacity for new grid connections.