The European Union (EU) parliament has recently approved electricity and gas market reforms to address the delivery problems and high prices that Europe is currently facing. These reforms have been implemented to protect consumers from price spikes resulting from energy supply issues and high prices due to Russia’s aggression in Ukraine.
The electricity market reform includes provisions for consumers to choose fixed-price or dynamic contracts, while energy companies are prohibited from unilaterally changing contracts. Additionally, member states can prevent energy companies from cutting off energy distribution during conflict situations, and compensation will be provided to energy producers when prices fall below a certain level.
Similarly, the gas market reform aims to reduce dependence on coal and introduce low-carbon gases like hydrogen and biomethane into the EU. There are also measures in place to ensure energy security during geopolitical turmoil by limiting gas imports from Russia. These reforms are part of the transition away from fossil fuels towards secure energy prices.
Both reforms are awaiting official approval from the EU member states before they can take effect. Once approved, these reforms will establish a common gas procurement system that will avoid competition among member countries, helping to ensure a stable and reliable energy supply for all EU citizens.
