by Kate Abnett
BRUSSELS (Reuters) – Denmark, Germany, the Netherlands, Estonia, Finland, Luxembourg and Latvia have warned Brussels not to make major changes to the EU electricity market in response to the energy crisis, calling instead for limited changes to the system Is.
The European Commission is drafting a reform of EU electricity market rules aimed at better cushioning consumer bills from fossil fuel price spikes and stemming a surge in electricity spikes triggered by Russian gas supply cuts last year.
The seven countries, led by Denmark, said in a letter that Europe’s current market design has promoted low electricity prices, helped to expand renewable energy and ensured that electricity was able to meet demand and avoid shortages. Sufficient electricity should be produced for
“We must resist the temptation to kill the golden goose, as our single market for electricity has been in the last decade,” said Lars Aagaard, Denmark’s energy minister.
The countries said there is some room for improvement, especially given the rising electricity prices last year. But any changes must ensure that the market still functions and encourage large-scale investment in renewable energy, he said.
“Any reforms that go beyond targeted adjustments to the current framework should be underpinned by an in-depth impact assessment and should not be adopted in crisis mode,” said the commission letter seen by Reuters.
Other countries, including Spain and France, are calling for deeper reforms. Spain has proposed a change to more long-term, fixed-price contracts for power plants in an effort to limit price increases.
The seven countries said in their letter that schemes to do so – such as contracts for difference (CFDs) – could play a role, but they should be voluntary, focus on new renewable generation, and still “react” to the market. Should do.
Electricity industry lobbying group Eurelectric has also warned against making CFDs mandatory, which they say could reduce competition in the electricity market and scare off investors.
In their letter, the seven countries endorsed an idea already mooted by the commission to make it easier for consumers to choose between fluctuating and fixed-price electricity contracts.
But he balked at another Commission suggestion to extend the temporary EU measure, which caps windfall revenue from non-gas generators.
“This could compromise investor confidence in the investments needed,” the countries said in the letter, citing EU projections that billions of euros in renewable energy investment are needed annually to help countries quit Russian fossil fuels. Is.
(Reporting by Kate Abnett; Editing by Paul Simao)
