The EU Parliament adopted a reform of the electricity markets on Thursday. This is intended to make the price of electricity, for example, more independent of the price of gas and fossil fuels. Moreover, consumers have more rights.
When you sign a contract in the future, you can decide whether you want fixed or dynamic, market-oriented electricity prices. Electricity suppliers, in turn, are no longer allowed to unilaterally change the contract terms or the contract. If prices are currently very high and certain other conditions are present, the EU could declare a regional or EU-wide electricity price crisis. This means that measures can be taken for smaller companies and energy-intensive industrial customers.
Promotion of renewable energy sources
Another aspect of the reform is the promotion of renewable energy sources. Companies investing in these or nuclear energy sources will receive minimum prices if market prices fall too much. If the market price is above a certain limit, the excess profits flow to the state.
Municipalities and utilities will have to be increasingly dependent on gas alternatives such as district heating in the future. Overall, the reform aims to make electricity prices less dependent on price fluctuations, better protect people from electricity price spikes and accelerate the expansion of renewable energy sources (see video above). An agreement and a directive were agreed.
Criticism: “There is no end to financial speculation”
“With the new rules for the European electricity market, we are making the energy bills of consumers and companies less dependent on short-term price fluctuations. We ensure that consumers have access to stable, cheap and clean energy (…),” said ÖVP delegation leader Angelika Winzig. The endorsement also came from NEOS, who see this as an opportunity to free themselves “from dependence on Putin’s gas.”
However, the criticism came from the globalization-critical network Attac. “Both electricity and gas must continue to be traded via speculative futures and non-transparent energy exchanges. There is no end in sight to financial speculation and profit maximization,” criticized Max Hollweg of Attac Austria.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
