Dear Commissioner Simson,
On behalf of Eurelectric, the European electricity association, we are writing to you to express our concerns about the recent Spanish Non-Paper “Proposal to reform the EU’s wholesale power market.” In particular, this letter aims to raise awareness of the implied risks for the integrity of the internal electricity market and for investors’ confidence if similar ideas were considered at EU level as part of the upcoming electricity market design review.
We recognise some positive aspects of the proposal, specifically:
- The recognition of the need for well-designed capacity markets which are still largely underdeveloped to ensure the needed investments in carbon-neutral firm and flexible capacities.
- The use of auctions for certain new renewable generation which allows the benefit of low and stable prices to be passed to consumers.
Nevertheless, the proposal contains some fundamental flaws and essentially implies a re-regulation of the energy sector.