IndustriAll Europe has submitted its response to the European Commission’s public consultation on the reform of the EU’s electricity market design, that ends today. The skyrocketing energy prices faced by households and industry since autumn 2021 have exposed the failure of the current market design, which was created in an era of abundant and cheap fossil fuel imports. In the context of the EU’s ambitious climate targets and the persisting energy price crisis, the EU needs more than just some adjustments to the current market design.
IndustriAll Europe regrets that the European Commission’s public consultation focuses on a set menu and fails to ask the more fundamental questions:
What electricity market design do we need to ensure the supply of abundant, low carbon electricity at stable, predictable and affordable prices for industry, local communities and households, with a view to achieving net-zero emissions by 2050? Is the market the best way to meet the needs and expectations of business competitiveness and individuals?
- A reformed electricity market that promotes social cohesion
- A reformed electricity market that ensures the supply of abundant electricity at predictable, affordable and stable prices for industry, local communities and households
- A reformed electricity market that is based on solidarity within the EU
- A reformed electricity market with strong safeguards against speculators & unjust profiteering
“Essentially, the reform must prevent further de-industrialisation of Europe and instead address the long-term challenges. Achieving the Green Deal will require massive electrification of manufacturing processes and transport and an increase in low carbon electricity generation. In that context, it is unsustainable to maintain a system where fossil fuels set the electricity price”, said Judith Kirton-Darling, Deputy General Secretary of industriAll Europe.
Based on our response to the Commission’s consultation, industriAll Europe is working closely with its members to develop a more detailed position and proposal for a reform of the EU electricity market that serves our common goal of achieving net-zero emissions in a Just Transition.