Eu decides on electricity market reform

Eu decides on electricity market reform

The EU has decided on a comprehensive reform of the electricity market to make energy more climate-friendly and cost-efficient. Negotiators from the EU member states and the european parliament agreed on corresponding legislative changes in brussel.

Consumers to get more transparency and freedom in choosing electricity supplier. Subsidies for coal-fired power plants as reserve power plants will no longer be possible after 2025. Environmental and consumer users reacted with pleasure.

In november 2016, the eu commission presented a huge package of measures to reform the eu energy market. Among other things, energy efficiency should be improved, billions of euros should be invested, and renewable energies should be strengthened. The agreement now reached by EU negotiators relates to some of these proposals. Both sides still have to officially accept it, but this is considered a formality.

In the future, it will be easier for consumers to switch electricity suppliers. Price comparison facilities and intelligent electricity meters are to help save energy and costs. It should also become easier to use and market solar power from one’s own roof.

"This is a good day for consumers," said monique goyens of the eu consumer protection association beuc. Currently, customers often had to wait weeks for a change of electricity supplier; in the future, this should be possible within 24 hours.

In addition, the EU agreement provides for simplification of cross-border electricity trading – also with the aim of promoting competition. In order to cushion the fluctuating supply on the electricity market, a cross-border cooperation of network operators is planned.

Furthermore, the demand for coal via so-called capacity mechanisms is to come to an end as of 2025. Until now, these mechanisms have been used to ensure that sufficient energy is available in exceptional situations. However, they were misused to support outdated and climate-damaging coal-fired power plants through the backdoor, criticized the climate action network (CAN).

The decisions will pave the way for an EU-wide end to coal after 2025, CAN said. The overall aim of the mabnahmen is also to achieve the climate targets that the company has set itself. The EU wants to produce at least 40 percent less greenhouse gases in 2030 than in 1990.

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