Brussels. Consumers across the EU will be able to enjoy more stable energy prices and less dependency on the price of fossil fuels, thanks to major reforms of the EU’s electricity and gas markets.
The EU will also promote the development of hydrogen and other decarbonised gases. These reforms will help secure the transition to clean energy, while improving security of supply and consumer protection.
The electricity market reforms approved by the EU will now allow consumers to formulate: – a wider choice of contracts and clearer information before signing contracts; – an option to lock in safe, long-term prices; – dynamic pricing contracts, if necessary, to exploit price variability to use electricity when it is most convenient; – protection from the absence of electricity through the establishment of suppliers of last resort; – protection from disconnection for those who are vulnerable or in conditions of energy poverty; – more opportunities for energy sharing, for example, tenants will be able to share excess solar energy on the roof with a neighbor.
European businesses will also have access to more predictable energy costs, which will help them remain more competitive. Both households and businesses will benefit from the lower costs of renewable energy, and EU countries will be able to extend regulated retail prices to both in the event of a crisis.
The new gas market framework will lead to the creation of a hydrogen market, which will be key to reducing emissions from heavy industries and transport. For consumers, the reforms will allow them to more easily switch gas suppliers, use effective price comparison tools and obtain accurate, fair and transparent billing information.
The updated framework also offers EU countries the possibility to stop or limit imports of piped gas and liquefied natural gas (LNG) from Russia and Belarus.
Abel Carruezzo
