EU countries increasingly agree the bloc must undertake a speedy reform of its power market, although they remain split over how deep the revamp should go.
The bloc’s countries have been staking out their positions on the upcoming reform — which among other things is aimed at shielding European consumers and industries from volatile energy prices — over the past several weeks ahead of the European Commission’s expected proposal, which is slated to land on March 16.
Two camps have emerged so far, with Spain and France pushing for a deeper and more interventionist reform, while Germany, Denmark, Estonia, Finland, Luxembourg, Latvia and the Netherlands urge caution and a more limited reform.
But at Monday’s meeting in Stockholm, both sides appeared to agree that speed is of the essence, with ministers from each camp advocating for some type of reform to be finished by the end of the year.
German State Secretary for Climate Action Sven Giegold said the bloc should opt for a “two-step” approach, with “no regret” measures prioritized before the 2024 European elections, and a “more systematic reform” left for later. Dutch Energy Minister Rob Jetten said he wants “to make sure this reform is delivered this year.”
In the more interventionist camp, France said it wants a redesign wrapped up by year’s end, while Spanish Energy Minister Teresa Ribera similarly argued that “timing is key” to this reform.
“Sometimes, not being in time is a disaster,” Ribera added.
The two sides still remain far apart on key issues, including whether or not a broader use of long-term, fixed-rate electricity contracts — known as power purchase agreements and contracts for difference — should be made mandatory, and imposed on existing generators as well as new projects.
The Swedish presidency of the Council of the EU, which lasts until the end of June, “is prepared to work as swiftly as possible during the spring” to move things forward, the country’s Deputy Prime Minister Ebba Busch told a press conference following Monday’s meeting.
“The electricity market design is definitely an issue of more long-term perspective — however, I think tempo is of utmost importance,” she added.
