Stockholm - European Union energy ministers meet on February 27th to debate upcoming power market reforms

The European Commission pledged last year to reform the EU's electricity market rules, after record-high gas prices - caused by cuts to Russian gas flows - sent power prices soaring for European companies and citizens.

According to the European Commission, the aim is to reform the electricity market to shield consumer energy bills from short-term swings in fossil fuel prices and make sure that Europe's growing share of low-cost renewable electricity translates into lower prices.

EU countries have announced that they are divided on the extent of reforms needed in the power market. Spain, France, and Greece are among those advocating for deep reform, including introducing "contracts for difference" (CfDs) or private Power Purchase Agreements (PPAs) between energy suppliers and power generators to provide stable prices for power. However, Germany, Denmark, Latvia, and four other countries are opposing significant changes, arguing that the existing power market is functioning well and has fostered low prices and renewable energy growth. 

The Commission has announced that it plans to propose reforms on March 14, and EU countries and lawmakers will negotiate the final law. The timeline for negotiations is complicated by the European Parliament elections in 2024.

Source: Reuters