Parliament today gave the green light to start negotiations with the Council on reforming the EU’s electricity market.

The decision to open talks with member states, as proposed by the Industry, Research and Energy Committee in July, was taken by 366 votes to 186 with 18 abstentions.

MEPs are seeking to strengthen consumer protection against fluctuating electricity prices and ensure that consumers have the right to choose fixed or dynamically variable price contracts.

The new legislation should also establish effective information on the contract options available to consumers, as well as a prohibition on suppliers unilaterally changing the terms of a contract.

All consumers, as well as small businesses, should benefit from this reform and the long-term, affordable and stable prices it will bring, and the mitigation of the effects of sudden market shocks.

MEPs are also calling on EU countries to ban suppliers from cutting off electricity to vulnerable customers, including during dispute resolution between suppliers and customers, and to prevent suppliers from requiring such customers to use prepayment systems.

Relevant information

Energy prices started to rise from mid-2021, initially as part of the economic recovery after the COVID-19 pandemic.

However, they have skyrocketed due to gas supply problems after Russia launched its offensive against Ukraine in February 2022.

High gas prices have directly affected electricity prices as they are linked to the EU’s rating system, where the most expensive energy source (usually based on fossil fuels) determines the overall price of electricity.

Katerina Plati