EU Parliament approves electricity market reform

The EU Parliament on Thursday adopted the EU electricity market reform, which is intended to make the market “more stable, affordable and sustainable.”

The reform, which was undertaken in response to the energy crisis that hit the EU in 2022, involves measures that seek to protect consumers against volatile prices and that provide for contracts for difference (CfDs) to encourage investment in new renewables or nuclear energy.

“This reform puts citizens at the forefront of electricity market design. The text includes measures to protect citizens, especially the most vulnerable and to accelerate the deployment of renewable energy sources. (...) All consumers, including micro, small, and medium-size enterprises will have access to long-term, affordable and stable prices,” said lead MEP Nicolas Gonzalez Casares.

The Council and the European Parliament reached an agreement on the reform in December 2023. The Council now also needs to formally adopt the legislation.

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