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EU to propose electricity market reforms in months

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Sep 2022 22:52
2 Min Read

The European Commission is planning on making reforms to the staggering electricity sector in a bid to help against the ongoing energy crisis all over the continent.

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  • European Commissioner for Electricity Kadri Simson
    European Commissioner for Electricity Kadri Simson

The European Commission is planning on submitting proposals to make amendments to the European energy market in the few upcoming months, kicking off 2023 with a reformed electricity market, European Commissioner for Energy Kadri Simson said on Tuesday.

"We kick-started a preparation of the reform of electricity market for early next year," Simson said at a plenary session of the European Parliament.

Simson also clarified that electricity prices all over the European Union spiked due to rising gas prices and out-of-the-ordinary heatwaves, causing nuclear power generation to drop while increasing demand for electricity.

Earlier, the European Commission prepared suggestions on measures aimed at tackling soaring energy prices to be discussed by the energy ministers of the bloc’s member states. The suggestions include the proposal to introduce a price cap on Russian natural gas.

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Earlier, media reports had also suggested that some EU countries suggested that a price cap should not single out Russia, but get applied to all the suppliers selling gas to bloc members.

It is worth mentioning that EU chief Ursula von der Leyen proposed that the bloc's 27 nations agree on placing a price cap on Russian gas imports.

Von der Leyen's decision comes as a means of imposing further sanctions on Russia as the West looks for more means of punishing the country over the war in Ukraine.

"The objective here is very clear. We must cut Russia's revenues which (Russian President Vladimir) Putin uses to finance this atrocious war against Ukraine," the president of the European Commission told reporters. 

Thirteen EU nations have either ceased getting Russian gas entirely or are only receiving a portion of it due to the temporary blockage of the Nord Stream pipeline 1, the Russian TASS news agency reported last week.

Surging costs of power linked to gas prices have already stunted the production of various industries, such as fertilizers and aluminum manufacturers, and prompted EU governments, such as Germany, to increase their spending by billions in order to help their citizens.

  • Europe
  • Ursula von der Leyen
  • Russia
  • Ukraine
  • European Commission
  • European Union
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