The Commission is under pressure from governments such as Italy, Portugal and Greece to review the existing market architecture in order to shape prices in a more positive way for the consumer.
Window for structural changes in energy market architecture, as requested by Athens and Rome, Lisbon, left the Ursula von der Layen, with the changes affecting everyone and everything in the industry.
“This is the work that the Commission has undertaken now. It is a huge overhaul, it will take time and it needs to be properly planned. But we need to move forward and adapt the electricity market to modern conditions,” she said. European Commission.
The Commission is under pressure from governments such as Italy, Portugal and Greece to review the existing market architecture in order to shape prices in a more positive way for the consumer.
In response to MEPs, Commission President Ursula von der Leyen acknowledged that the EU electricity market “no longer works” and must adapt to the “new reality of the dominant RES”.
According to Euractiv, Layen explained that the current measures to deal with high energy prices have failed to address structural issues in the European electricity market.
Commission President Ursula von der Leyen acknowledged in her response to MEPs that the EU electricity market “no longer works” and must be adapted “to the new reality of the dominant RES”.
According to Euractiv, Layen stressed that the current measures to deal with high energy prices have failed to address structural issues in the European electricity market.
“Actually, energy prices are skyrocketing “And we are doing a lot for that,” he said, referring to the Commission’s toolkit for member states that allows them to tax surplus profits and subsidize consumers. “But we also recognize that it is a short-term relief that will not change the market structure.” he added, noting that “it was designed based on data from twenty years ago”, when the share of RES was low.
“Today the market is completely different and it is RES that are the most economical technology.”
It is noted that the European regulator ACER had taken a position on the issue recently, supporting the existing model, stating that “it does not need to change drastically because in such a case there would be negative side effects”.
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