August 30, 2022
1 min read

EU plans overhaul of electricity market  

Against the backdrop of the Ukraine war, wholesale gas prices spiked, resulting in more expensive electricity…reports Asian Lite News

“Skyrocketing” energy prices expose the limits of the European Union’s (EU) electricity market design, European Commission President Ursula von der Leyen said while announcing plans for a structural reform.

The market “was developed under completely different circumstances”, von der Leyen said on Monday.

“That’s why we, the commission, are now working on an emergency intervention and a structural reform of the electricity market,” she said, without elaborating on the changes under consideration.

The EU has grappled with surging energy prices for the last six months in the wake of the Russian invasion of Ukraine.

An emergency meeting of EU energy ministers is planned for September 9.

Electricity prices in the European market are set by the most expensive energy source needed in production, currently gas-fired power plants.

Against the backdrop of the Ukraine war, wholesale gas prices spiked, resulting in more expensive electricity.

A reform of the European electricity market could revise this so-called merit order mechanism and allow consumers to pay less for cheaper electricity generated with solar and wind energy.

German Economy Minister Robert Ha beck also recently announced market reforms to separate customer prices for electricity from the rising cost of gas.

Praising EU efforts to end a chronic over reliance on Russian fossil fuels, von der Leyen cautioned against developing a new dependency on China for strategic raw materials like Lithium for batteries.

“Out of the 30 critical raw materials today, 10 are mostly sourced from China. So we have to avoid falling into the same dependency as with oil and gas,” von der Leyen said.

ALSO READ-Rift in EU on visa ban for Russians

Previous Story

New deal to revive Arab musicals

Next Story

Afghanistan on brink of famine: UN

Latest from -Top News

Top Indian Officials Head to Washington

The visit, likely next week, follows US President Trump’s claims that his administration helped broker the recent India-Pakistan ceasefire….reports Asian Lite News Top sources revealed on Sunday that Foreign Secretary Vikram Misri

India, Canada Discuss Enhancing Diplomatic Relations

Canada’s new Prime Minister Mark Carney is pushing for deepening economic cooperation with India….reports Asian Lite News External Affairs Minister S. Jaishankar held his first phone call with Canadian counterpart Anita Anand,

Ramaphosa gains from US showdown

South African President’s conduct with Trump reminded South Africans of his diplomatic pedigree, and of his importance to the country’s rules-based order South Africa’s President Cyril Ramaphosa and his delegation went to
Go toTop

Don't Miss

European Commission Faces Pressure to Regulate Ukraine’s Grain Export Routes

The Minister also said that it is necessary to look

EU extends critical support to India

As the Covid cases on the rise in India, the