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Ahead of the European Council on 19-20 March, the Eurelectric Presidency has sent a letter to EU Heads of State and Government, calling for regulatory stability and reaffirming the merits of marginal pricing in Europe’s electricity market. President Markus Rauramo, CEO of Fortum, as well as Vice Presidents Catherine MacGregor, CEO of Engie, and Georgios Stassis, Chairman and CEO of PPC, warn that reopening a market reform only recently concluded would risk delaying the massive investments needed to deliver affordable, secure and decarbonised electricity.
The debate over the marginal pricing system for the electricity wholesale market has reignited, with Commission President Ursula von der Leyen stating that she will bring “different options and findings on whether it is time to move forward with the market design” during the next European Council on 19-20 March.
At a time when the power sector is expected to invest more than €5.6 trillion by 2050 in generation capacity and infrastructure, reopening a discussion that was only recently concluded would discourage the necessary investments to deliver clean, secure and cheap electricity.
Against this backdrop, the Presidency of Eurelectric reiterates that marginal pricing remains “the most efficient and robust mechanism to ensure cost-effective dispatch, transparent price signals, and efficient investment incentives”.
The letter also stresses that there are already measures that the European Commission and Member States can adopt to reduce prices in the short term without distorting the market, as identified in its joint recommendations alongside European industrial sectors, including the chemicals, steel and aluminium sectors, as a follow-up to the Antwerp dialogue.
Additionally, the letter reaffirms the key role of the EU Emission Trading System (ETS) in Europe’s decarbonisation and calls for maintaining its integrity to further drive cost-efficient emission reduction.
“Eurelectric stands ready to support and engage constructively to ensure affordable prices while retaining an attractive environment for investments” the Eurelectric Presidency concludes.
ENDS
Note to Editors:
Eurelectric represents the common interests of the European electricity industry. Speaking for more than 3500 electricity companies, we seek to promote the role of electricity in the advancement of society.