by Kate Abnett

BRUSSELS (Reuters) – The European Commission on Tuesday unveiled a proposal to reform European electricity market rules, with the aim of expanding the use of fixed-price energy contracts to protect consumers from a surge. bills, after a jump in energy prices last year.

Brussels embarked on this project after the fall in Russian gas deliveries to Europe, following the offensive launched in Ukraine, caused a surge in energy prices, affecting businesses and individuals.

Drafts of the Commission’s proposal document, seen by Reuters, detail measures to make consumers less exposed to short-term movements in fossil fuel prices, by encouraging bloc countries to sign contracts that lock in electricity prices for a long time.

Thus, for example, the European executive’s proposal aims to impose the use of “contracts for difference” (CfD) to obtain future public aid for new investments in wind, solar, geothermal energy, among others.

Other elements of the text are intended to accelerate the exit of gas from the European energy mix.

If Brussels described its reform project last year as an opportunity to separate gas prices and electricity prices, the draft document does not advocate a complete overhaul of the electricity market that certain countries, including the Spain and France. The Commission preferred to focus on alterations intended to cap prices.

Other countries in the EU bloc, such as Germany and Denmark, have warned that major changes could have the effect of scaring investors away.

It is up to EU countries and the European Parliament to debate and approve the final regulations, while some want to get an agreement by the end of the year.

(Report Kate Abnett; Jean Terzian)

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