Spain and the Netherlands have expressed their support for a quick agreement on the upcoming overhaul of the European electricity market. This reform aims to reduce electricity costs and help industries compete in global markets. The European Union’s energy ministers met in Stockholm on Monday, February 28, 2023 to discuss future plans.
Plans to prevent fluctuations in fossil fuel prices
The reform of the European electricity market aims to change the market to prevent short-term fluctuations in fossil fuel prices from wreaking havoc on the energy bills of European consumers. However, the plans have already sparked disagreement among EU countries on the scope of the reform.
Disagreement among EU countries on the scope of market reform
Spain is among those calling for substantial changes to align the system with Europe’s shift to green energy, while the Netherlands is wary of a major shake-up that could deter much-needed investment in the energy sector.
However, the Netherlands favors a robust and speedy process to ensure that the reform is completed this year, Dutch Energy Minister Rob Jetten told Reuters.
Spanish Energy Minister Teresa Ribera told Reuters that “timing is everything. And sometimes not being on time is a disaster.” She added that the reforms should be agreed before the European Parliament elections in mid-2024.
Reform as a response to the U.S. Green Industries Inflation Reduction Act
Ribera also said the reform could be part of Europe’s response to the huge subsidy package of the U.S. Inflation Reduction Act for green industries. “Right now, the one thing that makes the biggest difference in terms of competitiveness between the U.S. and Europe is the cost of energy,” she said.
Negotiations on major EU legislation may take two years
Negotiations on major EU legislation, which require the approval of EU countries and the European Parliament, can take two years or more. The European Commission will propose the reforms next month.
