EU deal on electricity market rules to benefit both consumers and environment

Electricity 2019 EU

Photo: Parliament and Council negotiators agreed to move ahead towards a real European electricity market (European Parliament, 2019)

This article is brought to you in association with the European Parliament.


The creation of a genuine EU electricity market to better integrate renewable energy was provisionally agreed between MEPs and EU member states on Tuesday.

An overhaul of EU electricity market rules was informally agreed to tackle barriers to cross-border trade of electricity and create a real European electricity market where 70% of all electricity can cross EU borders freely. This will make it easier to integrate renewable energy in the electricity grid and hence support efforts to reach the EU’s binding goal of 32% renewables by 2030. In addition, it strives to make the EU’s electricity market more competitive and consumer-oriented.

A better deal for consumers

Consumers will benefit substantially from the new rules, which include:

  • Switching – electricity providers must offer consumers the option to switch provider (with no fees) within a maximum period of three weeks (and 24 hours by 2026);
  • Smart meters – consumers will have the right to get smart meters to control their consumption, unless analysis in a given member state shows that the cost outweighs the benefits;
  • Price comparison: consumers will have access free-of-charge to an online price comparison tool;
  • Dynamic price contract: consumers will also be able to opt for a dynamic electricity price contract from energy companies with more than 200.000 clients.

No more state subsidies to the most polluting coal power plants
EU rules currently allow national authorities to pay conventional power plants to be on stand-by for a limited period of time if there is a demand peak or temporary shortage of renewable energy (e.g. wind and sun), known as capacity mechanisms.
As requested by Parliament, the agreed text provides for an additional EU assessment (together with national ones) on the risks of a possible electricity shortage in member states to avoid unnecessary use of these exceptions.
In addition, stricter limits for member states willing to subsidise power stations as a capacity mechanism shall prevent the most polluting coal power plants in Europe from receiving state aid. Power stations emitting more than 550 gr of CO2/kilowatt hour of electricity shall not receive subsidies from the state to remain on stand-by in case of demand peak of electricity. The measures will apply to all new capacity mechanisms from date of entry into force of the Regulation and to existing ones from 2025.
Energy poverty and price regulation
Member states will be able to regulate prices temporarily to assist and protect energy-poor or vulnerable households, negotiators agreed. Preference should however be given to addressing energy poverty through social security systems.
EU member states that still regulate household prices may continue to do so but they shall submit reports to assess the progress towards abolishing price regulation. By 2025 the Commission shall submit a report on overall EU progress, which may include a proposal to end regulated prices.
Quote
After the deal was reached, rapporteur Krišjānis KARIŅŠ (EPP, LT) said: “This agreement is good for the climate and good for the wallet. It will help the transformation to cleaner electricity production and it will make the electricity market more competitive across EU borders. Parliament has succeeded in getting rid of heavy state subsidies, so that the market can do its job of supplying EU industries and households with affordable and secure energy.”
Next steps
The deal will now be put to the Industry, Research and Energy Committee and plenary for approval as well as to the Council. The Regulation and the Directive will enter into force 20 days after publication. Member states will have to implement the Directive by 31 December 2020.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UNICEF urges all countries to provide ‘Super Dads’ with paid leave

EP stands up for democracy in Hungary during COVID-19

6 ways to drive funding to transform the fashion industry

Commission supports reform projects in Member States for more jobs and sustainable growth

Scientists studied microbes feeding on Antarctica’s first methane leak – here’s what they found

Bridging the gap: Health through technology

‘Forgotten’ pneumonia epidemic kills more children than any other disease

Is the energy industry meeting its sustainability goals?

Commission concludes that an Excessive Deficit Procedure is no longer warranted for Italy at this stage

Confidence in the COVID-19 vaccine grows in UK and US, but global concerns about side effects are on the rise

Mobile health: The future of global healthcare

Six children among 53 confirmed fatalities after Libya detention centre airstrikes: Security Council condemns attack

Why practicing medicine privately at home is still a (difficult) option?

Afghanistan probe: ‘at least 60 civilians’ killed after US military airstrikes on alleged drug labs

VP McGuinness on women’s rights: “Not an option, but a duty”

Humanitarian migration falls while labour and family migration rises

What can we do about the crisis in trust in public institutions?

6 things to know about the General Assembly as UN heads into high level week

End Syria fighting to avoid ‘even greater humanitarian catastrophe’

Egypt urged to free prominent couple jailed arbitrarily since last June: UN rights office

Recovering from COVID-19: these are the risks to anticipate now – before it’s too late

The needs, challenges and power dynamics of refugee resettlement

COVID-19 and nature are linked. So should be the recovery.

Spending another 3 billion euros on Turkey feels better than admitting EU’s failure

G20 LIVE: The European Sting covers online world news and the latest developments at G20 from Antalya Turkey

Eurozone: Retail sales and inflation point to recession

Access and hesitancy as major challenges surrounding covid-19 vaccination campaigns

North-east Nigeria displacement crisis continues amid ‘increased sophistication’ of attackers, warns UN

Exchanges of medical students and the true understanding of global health issues

What will education look like in 20 years? Here are 4 scenarios

Balancing economic growth and the environment: lessons from Brazil

7 skills every leader needs in times of disruption

World’s most powerful tidal turbine pumps out greener electricity in Scotland

Cyclone Idai: UNICEF warns of ‘race against time’ to protect children, prevent spread of disease in flood-ravaged Mozambique

African cooperation on peace ‘increasingly strong’, Security Council told

Western Sahara: a ‘peaceful solution’ to conflict is possible, says UN envoy

Palliative care and Universal Health Care

Brexit: Britain and the Continent fighting the battle of Waterloo again

How the ‘California effect’ could shape a global approach to ethical AI

3.7 million lives could be saved by 2025 if health services ramp up nutrition actions: WHO

Brexit kick-off: a historic day for the EU anticlockwise

State aid: Commission approves Greek public funding for construction and operation of North section of E65 motorway

Asylum: MEPs call for more solidarity among EU member states

Iraq: Education access still a challenge in former ISIL-controlled areas

It’s time to end our ‘separate but unequal’ approach to mental health

Long-term EU budget: The Union’s ambitions must be matched with sufficient reliable funding

How cities can become more resilient to climate change

SDG progress ‘in danger’ of going backwards without change in direction, new UN report reveals

South Africa’s economy in 5 charts

Terrorist content online: companies to be given just one hour to remove it

Anti-vaccination scaremongering: What should we know about anti-vaccine argument?

Why cities hold the key to safe, orderly migration

UN welcomes ‘most comprehensive agreement ever’ on global health

Remembering Kofi Annan

EU-US ties to break over Iran; Democrats’ electoral win may not change it

MEPs demand unprecedented support measures for EU firms and workers

New UN bullying report calls for ‘safe, inclusive’ schools for all children

UN chief ‘following very closely’ reports of chemical weapons use in Syria’s Aleppo

Greece @ MWC14: Greek-born mobile champions at MWC 2014

UN rights chief Bachelet appeals for dialogue in Sudan amid reports ‘70 killed’ in demonstrations

More Stings?

Comments

  1. This is the best information to us,thanks for your info

    study in Europe

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s