Brussels argues that the system works and that it solely wants tweaking for instances of disaster The proposal doesn’t separate gasoline from value formation however consists of an necessary Spanish request These modifications are removed from the ambition of the Spanish proposal for the electrical energy market
The European Commission introduced this Tuesday a proposal to reform the design of the European electrical energy market that seeks to “speed up the implementation of renewables and the tip of the usage of gasoline, make customers much less depending on the risky costs of fossil fuels, higher shield customers from future value will increase and potential market manipulation and make European trade cleaner and extra aggressive. The proposal have to be accredited by the European Parliament and by the governments however the European Commission doesn’t presently have the required votes within the Council.
In the second paragraph of the press launch accompanying the proposal, the Commission already says that “the EU has had an environment friendly and well-integrated electrical energy marketplace for 20 years that has allowed customers to reap the financial advantages of a single vitality market , safe provide and stimulate decarbonisation”. And then what want is there to reform something? War.
The Russian struggle of aggression on Ukraine, in keeping with the neighborhood principle, triggered costs, though the rise is earlier, and made it doable to comprehend the pressing have to “higher help the inexperienced transition and supply customers higher entry to renewable vitality and non-fossil and low-cost electrical energy”. To gatoparde that, reforming every thing with out a lot reform, Brussels proposes to the touch three regulatory packages in drive in order that “long-term contracts with non-fossil producers are inspired.”
That, believes that the Commission, will serve to scale back the usage of gasoline and in order that the decrease price of renewable electrical energy is mirrored within the payments. Far, very far, from the Spanish proposal to have the ability to set up a set value at which to remunerate renewable and nuclear firms and to decouple gasoline costs from the formation of electrical energy costs. Good information for the electrical firms, which is able to be capable of promote at the price of gasoline every thing they generate in crops with much less price, similar to renewables.
Brussels needs the deployment of renewables to be 3 times the present one by the tip of the last decade (a doable aim in view of the implementation of renewables lately) and believes that this deployment will serve not solely to battle the local weather disaster but additionally additionally to have an autonomous provide that makes the European Union much less depending on third international locations.
Despite what has been leaked in latest days, the proposal does embrace that contracts for brand new investments in hydroelectric, renewable and nuclear embrace these often called CFDs (contracts for distinction). That was partly in what was proposed by the Spanish Government and seeks to keep away from what is named advantages fallen from heaven.
In CFDs a value is fastened. If the market value is larger, the vendor pays the distinction to the client and whether it is decrease, the client pays the vendor. Electric firms guarantee fastened revenue and governments make sure that customers don’t pay advantages fallen from heaven. The distinction with the Spanish proposal is that it sought to use it to all new contracts and Brussels proposes that it apply to all new investments.
On the a part of customers, Brussels doesn’t transcend proposing that the electrical firms are obliged to supply contracts at variable costs relying in the marketplace and likewise at fastened costs (proper now they don’t have the duty to supply the latter) and to encourage the signing of long-term contracts “to keep away from extreme danger”. Brussels additionally permits one thing that’s already being achieved, that governments can “shield weak customers” in order that their electrical energy is just not minimize off in instances of non-payment and to set regulated costs for weak households or SMEs in instances of disaster.
The European Commission needs to completely preserve some measures accredited final 12 months and which have been initially momentary because of the disaster, similar to decreasing electrical energy demand at peak instances or gasoline storage ranges.
Spain, France, Italy or Greece need a way more profound reform, which returns to the best way through which costs are fashioned, quite than placing patches to right the present system. Brussels, following what Germany or the Scandinavians defend, doesn’t get to that as a result of if the system works, why change every thing.
In an interview with the EFE information company and different main press companies, the president of the European Commission, Úrsula Von der Leyen, says that “the reform will drastically cut back the influence of gasoline on the value of electrical energy”, but additionally denies to go additional as a result of he assures that “we’ve an intraday market that works effectively”, though he acknowledges that “we’ve to enhance in long-term contracts”.