BRUSSELS: Denmark, Germany, the Netherlands, Estonia, Finland, Luxembourg and Latvia have warned Brussels to not rush into main adjustments to the European Union’s electrical energy market in response to the vitality disaster, calling as an alternative for restricted tweaks to the system.
The European Fee is drafting a revamp of EU electrical energy market guidelines, with the intention of higher cushioning shopper payments from fossil gasoline value spikes and avoiding a repeat of the surge in electrical energy spices triggered final 12 months by cuts to Russian fuel provide.
The seven nations, led by Denmark, stated in a letter that Europe’s present market design has fostered years of decrease electrical energy costs, helped develop renewable vitality, and ensured sufficient energy was produced to satisfy demand and keep away from shortages.
“We should resist the temptation to kill the golden goose, that our single marketplace for electrical energy has been within the final decade,” stated Lars Aagaard, Denmark’s vitality minister.
The nations stated there was some room for enchancment, notably in mild of hovering energy prices final 12 months. However any adjustments should make sure the market nonetheless capabilities and incentivises huge funding in renewable vitality, they stated.
“Any reform going past focused changes to the present framework needs to be underpinned by an in-depth influence evaluation and shouldn’t be adopted in disaster mode,” stated the letter to the Fee, which was seen by Reuters.
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Different nations, together with Spain and France, are looking for deeper reform. Spain has proposed a shift to extra long-term, fixed-price contracts for energy vegetation, to aim to restrict value spikes.
The seven nations stated of their letter that schemes to do that – like contracts for distinction (CfDs) – might play a task however they need to be voluntary, give attention to new renewable technology, and nonetheless “react” to the market.
Electrical energy business lobbying group Eurelectric has additionally warned in opposition to making CfDs necessary, which it says might undermine competitors within the energy market and deter buyers.
Of their letter, the seven nations backed an concept already mooted by the Fee to make it simpler for shoppers to decide on between fluctuating and fixed-price energy contracts. However they pushed again on one other Fee suggestion to increase a brief EU measure which claws again windfall income from non-gas mills.
“That might compromise buyers’ confidence within the wanted investments,” the nations stated within the letter, citing EU estimates that a whole bunch of billions of euros in renewable vitality investments are wanted yearly to assist nations give up Russian fossil fuels.