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Brussels’ political scene took its usual break in August. Drought and temperatures around 40 degrees Celsius may have reminded some people of the tasks ahead, even during the summer break. Next week, things will get back to business, with informal meetings of foreign and defense ministers on the agenda, among other things.
The Commission is stepping up the pace: Next year it intends to present a legislative proposal for a new electricity market design. It wants to take faster and more comprehensive action against high electricity prices than in the past. As Manuel Berkel has learned, a large-scale consultation is to begin this fall. At the end of March, EU heads of state and government urged Brussels to come up with a fundamental solution to high energy prices. Such a swift initiative with legislative character still comes as a surprise, as a new energy market design was previously regarded as a mammoth project that would take many years to complete.
The German industry eagerly awaited it: The Commission has approved the German government’s electricity price compensation scheme. Energy-intensive companies can be reimbursed a total of €27.5 billion in indirect emission costs for the years 2021 to 2030. But some questions remain unanswered, as Lukas Scheid analyzes. Since details of the compensation scheme are still lacking, experts find it difficult to classify the significance of the billion euro sum. Uncertainty is also caused by the ecological measures that Brussels is demanding in return for the electricity price compensation.
Sarah Schaefer
Feature
Law against high electricity prices coming in 2023
The European Commission wants to take faster and broader action against high electricity prices than previously known. A spokesperson for Energy Commissioner Kadri Simson announced concrete steps for a new electricity market design on Thursday in response to a question from Europe.Table: “We plan to launch a broad public consultation in the fall, based on an initial impact assessment setting out the main issues and objectives. This will allow us to present a legislative proposal next year.”
Such a quick initiative with legislative character comes as a surprise. Until now, a new energy market design was considered a mammoth project that would require years of preparation. However, high prices for gas and electricity have been burdening EU members at least since the start of the Russian war against Ukraine. At a meeting in Brussels at the end of March, the heads of state called on the Commission to draft a fundamental solution in addition to immediate measures.
In connection with the legislative initiative and the public consultation, the Commission spokesman yesterday referred to a statement Simson made at the extraordinary meeting of energy ministers in late July: “We are responding to the mandate of EU leaders to look at how our electricity market could function in a situation of extreme volatility and how we can maximize the benefits of renewables in the system.”
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