EU executive body looks for solutions to curb ‘skyrocketing’ energy prices amid crisis
In an effort to curb “skyrocketing” prices, the European Commission is working on “structural reforms” in the EU electricity market, the head of the bloc’s executive body said on Monday
“Skyrocketing electricity prices are now exposing the limitations of our current electricity market design,” Ursula von der Leyen said at the Bled Strategic Forum in Slovenia.
She admitted that the bloc’s electricity pricing system, which bases the final price on that of the latest and most expensive energy source and does not reflect the lower costs of renewables or nuclear power, “was developed for different circumstances.”
“That is why we are now working on an emergency intervention and a structural reform of the electricity market.”
She also explained that the EU’s work on “ending our dependence on dirty and dangerous Russian fossil fuels” has made progress.
The bloc managed to secure 32 billion cubic meters (bcm) of natural gas from other sources and is expected to save another 45 bcm by reducing consumption by 15%, while advances have also been made in the transition to renewables, she noted.
“The era of Russian fossil fuels in Europe is coming to an end, and with freedom from blackmail will come greater power to defend global rules,” von der Leyen underlined.
EU energy ministers are to hold an emergency meeting on Sept. 9, following an initiative of the Czech revolving presidency of the Council of the European Union.
“We must fix the energy market. Solution on the EU level is by far the best we have,”said Jozef Sikela, the Czech minister of industry and trade.
Several EU governments, including Germany, Austria, and Belgium, have recently called for reform in the pricing mechanism of the European energy market and to decouple gas and electricity markets.
Spain, Greece, Italy, France, and Portugal have been advocating similar reforms for over a year to protect consumers from rising energy prices.