Parliament makes EU electricity market cleaner and more consumer-friendly

Electricity 2019_

(Matthew Henry, Unsplash)

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


New rules to create a Europe-wide market for electricity that is cleaner, more competitive and better able to cope with risks, were approved by Parliament on Tuesday.

MEPs adopted four new laws on the EU electricity market, agreed informally with EU ministers in late 2018, and hereby conclude the Clean Energy for All Europeans package.

The agreement on the “Internal market for electricity” (Regulation) was approved with 544 votes to 76, and 40 abstentions. The agreement on “Common rules for the internal electricity market” (Directive) was approved with 551 votes to 72, and 37 abstentions.

A better deal for consumers

Consumers will benefit substantially from the new rules, as they will have access to smart meters, dynamic pricing and the option to switch provider at no cost within a maximum period of three weeks (and 24 hours by 2026).

Energy poverty and price regulation

Member states will also still, under strict conditions, be able to regulate prices temporarily to assist and protect energy-poor or vulnerable households. However, social security systems should be the primary means of addressing energy poverty.

Increase cross-border flow of electricity

One of the main objectives of the new rules is to allow at least 70% of trade capacity to cross borders freely, making it easier to trade renewable energy across EU borders and hence support efforts to reach the EU’s binding goal of 32 % renewables by 2030.

State aid to fossil fuels phased out

EU rules currently allow national authorities to pay power plants to be on stand-by for a limited period of time if there is a demand peak, known as capacity mechanisms. The new rules will introduce stricter limits for member states subsidising power stations to prevent the most polluting fossil-fuelled power plants in Europe from receiving state aid. The measures will apply to all new power plants from the date on which the Regulation enters into force and to existing ones from 2025. Capacity contracts concluded before 31 December 2019 will not be affected by the new rules.

After the vote, the rapporteur on the internal market for electricity Jerzy Buzek (EPP, PL) said: “The reform of the EU electricity market should make it more competitive across EU borders and support the transformation to cleaner electricity. It gives more power to consumers and protects the energy-poor. It is good for the environment and good for the wallet.”

More detailed information on the new electricity market rules is in the press release after the agreement with the member states.

New EU measures to prevent electricity blackouts

The new law on preparing the electricity sector to cope with risks was approved with 569 votes to 61, and 34 abstentions. New measures ensure that EU citizens will be better protected against sudden electricity supply shortages leading to blackouts. Member states will be obliged to draft national plans to assess the risk of shortages and cooperate at regional level. Member states receiving assistance from other EU countries should ultimately bear all reasonable costs associated with this.

After the vote, the rapporteur on risk preparedness Flavio Zanonato (S&D, IT) said: “This agreement establishes solidarity as the real backbone of managing electricity risks, so that in the future no one will be left alone to cope with a cold spell and with sudden interruptions to electricity.”

More detailed information is in the press release after the agreement with the member states.

Better regulation of the electricity market

To be able to better regulate the EU electricity market, the rules establishing the Agency for the Cooperation of Energy Regulators (ACER) has been amended and the agency will receive more tasks and power. The agreement on ACER was approved with 558 votes to 75, and 31 abstentions.

After the vote, the rapporteur on ACER Morten Helveg Petersen (ALDE, DK) said: “We are taking important steps with the ACER reform towards a more open and better regulated electricity market. This will benefit the climate, consumers and our economy at large.”

More detailed information is in the press release after the agreement with the member states.

Next steps

The agreements will now have to be officially approved by EU ministers and published in the Official Journal of the EU before they can enter into force.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

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

How smart farming is helping Brazil feed the world

4 steps towards wiping out cervical cancer

This surgeon runs a makeshift hospital for over 200,000 people

2030 development agenda: Major breakthrough for world of work

Will Brexit shatter the EU or is it still too early to predict?

Why the World Cup is a bit like international trade

Brexit: UK to suffer from EU’s uncompromising stance

Youth and Participation: are the people rising up in Spain? 


EU legislation protecting home buyers approved in Parliament

A new European banking space is born this year

Imaginary Journeys Into Eternal China

Devastating storms like Hurricane Florence ‘unusual this far north’: UN weather agency

‘Growing alarm’ over Fall Armyworm advance, with cash crops ‘under attack’ across Asia

What does reimagining our energy system look like?

Eurozone again whipped by Greek winds

JADE @ European Business Summit 2014: Youth Unemployment – a drive to Entrepreneurship

Which countries get the most sleep – and how much do we really need?

Cameron’s “No Brexit” campaign wins top business support as Tory front breaks

Why Europe is more competitive than the US

MEPs Anti-fraud votes for more votes?

Bertelsmann Stiftung @ European Business Summit 2014: Transatlantic Free Trade Agreement (TTIP) needs balanced approach

The EU can afford to invest trillions in support of employment

UN political chief calls for dialogue to ease tensions in Venezuela; Security Council divided over path to end crisis

Jean-Claude Juncker and Theresa May at last week’s EU Council. Source: EC Audiovisual Services / Copyright: European Union, 2017 / Photo: Etienne Ansotte

EU leaders open “Phase Two” of Brexit talks and warn Theresa May of tougher times

Why CFOs need to rethink what it means to create value

An ageing workforce isn’t a burden. It’s an opportunity

5G will redefine entire business models. Here’s how

Forests ‘essential’ for the future, UN agriculture chief spells out in new report

Legal Manager – 2050

4 key steps towards a circular economy

We can build an inclusive workplace, and it starts with empathy

Climate change will force us to redefine economic growth

Crimean crisis: not enough to slow down European indices

vSudan: UN chief calls for ‘positive momentum’ as civilian rule talks stall between military and opposition

3 charts to help you understand the American shale boom

FROM THE FIELD: One teen’s journey from refugee camp to US school principal

Assembly of European Regions @ European Business Summit 2014: Made in Europe – Made of Regions

EP Group leaders on Brexit: “the agreement is not open to renegotiation”

Diversity training doesn’t change people’s behaviour. We need to find out what does

Tackling the toxic norms that hold women back in Asia

Here are three ways blockchain can change refugees’ lives

This AI-powered app aims to help people with autism improve their social skills

UN lauds special chemistry of the periodic table, kicking off 150th anniversary celebrations

MWC 2016 LIVE: Mobile has power to tame transaction fees – PayPal CEO

EU Justice Scoreboard 2019: results show the continuing need to protect judicial independence

Europe is now practically divided as in the Cold War

Five years down the drain

The first new university in the UK for 40 years is taking a very different approach to education

Mood changes in Europe in favour of growth and jobs

Parliament toughens its position on banking union

A Sting Exclusive: “EU’s Sustainable Finance Action Plan – Laying down the foundations for a Greener Financial System”, by European Commission’s Vice-President Dombrovskis

Copyright: MEPs back provisional agreement

This robot has soft hands. It could be the future of sustainable production

Climate change recognized as ‘threat multiplier’, UN Security Council debates its impact on peace

Distributed ownership: what it means and how it could transform India

Financial Transaction Tax: More money for future bank bailouts?

European welfare states are failing young people

New Zealand has unveiled its first ‘well-being’ budget

Why city residents should have a say in what their cities look like

European creativity and digital economy are drowning in a copyright swamp

More Stings?

Trackbacks

  1. […] Parliament makes EU electricity market cleaner and more consumer-friendly  The European StingThis article is brought to you in association with the European Parliament. New rules to create a Europe-wide market for electricity that is cleaner, more … Source: News Bot Parliament makes EU electricity market cleaner and more consumer-friendly – The European Sting […]

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