Commission proposes overhaul of EU electricity market design

Measure in Brief

The Commission proposed reforms to the EU electricity market design, revising the Electricity Regulation, the Electricity Directive and the REMIT Regulation to accelerate renewables, phase out gas and reduce fossil-fuel exposure in consumer bills. The package incentivises longer-term non-fossil contracts, requires public support for new renewable investments to take the form of two-way Contracts for Difference, promotes demand response and storage, allows system operators to procure demand reduction and strengthens REMIT to improve data quality and ACER's investigatory role.

Who Is Affected

Households, vulnerable consumers, SMEs, suppliers and power producers face new consumer protections, obligations on suppliers to manage price risk and Member State duties to establish suppliers of last resort and prevent disconnection of consumers in arrears. Industry will be supported by measures to boost PPAs, market-based guarantees and more predictable forward contracts, and consumers and tenants will be able to share rooftop solar with neighbours.

What Comes Next

The proposal will be discussed and must be agreed by the European Parliament and the Council before entering into force; the Commission issued storage recommendations alongside it.