The European Union said on Monday that it is planning for an emergency intervention and structural reform of the European power market, as it faces mounting criticism in the face of absurd price increases.
The change, long sought by France but opposed by the EU’s 27 member states, will be discussed at a meeting of EU energy ministers on September 9 in Brussels.
At a seminar in Bled, Slovenia, European Commission President Ursula von der Leyen stated that high power prices plainly reflect the limits of present market performance. According to AFP, it was created in a very different context.
This is why we are presently working on emergency intervention and market structural transformation, she stated flatly.
The next meeting will be held on September 9, according to Czech Industry Minister Josef Sekila, whose nation now holds the rotating presidency of the European Union. The energy market must be reformed. It is preferable to find an EU-wide solution, he stated on Twitter.
On Monday, German Chancellor Olaf Scholz encouraged member states to establish a speedy and coordinated agreement on the changes. He stated that the existing system cannot be characterised as working if it results in such high electricity prices.
After 6 months of war in Ukraine and spiking energy costs, fears of a skyrocketing cost of living in the winter are spurring calls for a reform in the shared power market.
The price charged to all electrical distribution firms on the continent sets the cost of the final source of electricity to fulfil demand in the European market, which is largely gas-fired power plants.
The price of electricity increased in tandem with the price of gas, which was caused by a dramatic fall in Russian gas imports to Europe.
Austrian Chancellor Karl Nahammer called on the European Union on Sunday to separate the price of electricity from the price of gas in order to halt the pricing war. He stated that this chapter will be included in the September 9 speech.
On the same day, Belgian Energy Minister Tine van der Straiten called for market reform, claiming that the current system has failed to satisfy the demands of many customers and households.
This chapter has also been requested by France, which feels that decreasing nuclear energy costs do not benefit French customers owing to an outdated process.
Nine member countries, including Germany, vehemently resisted any change of the energy market last year, stating that the present system was beneficial in contributing to innovation and easing the transition to renewable energies.
In response to increasing power costs, the European Union is planning a fundamental overhaul of the electricity market.
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