We need an evolution, not a revolution
We are pleased to see that the EC consultation does not fundamentally question the current electricity market design based on short-term marginal pricing and its key features (cost-efficiency, cross-border exchanges, and competition between market players). In this regard, it is essential to stress that the current market design is not the cause of high electricity prices, and the forthcoming revision must preserve the underlying features and benefits of the current Internal Energy Market.
Having said that, we fully support the aim of the reform to accelerate investment into renewable energy sources (RES) and other low-carbon technologies, to reduce our dependence on fossil fuels and reach net-zero. This, all while fostering customer engagement and ensuring the affordability of the energy transition by bringing the benefit of RES and low-carbon generation more directly to all consumers.
The Electricity Market Design Reform is an occasion to reinforce the integration of the internal energy market. Emergency measures should be developed on an ad-hoc basis to meet the specific needs of crisis situations and should always be targeted, temporary, and time-limited. We therefore strongly caution against institutionalising exceptional interventions such as market revenue limitation, regulated prices or revenues.
Enhancing hedging opportunities and long-term contracting to enable needed investments while ensuring consumer affordability
The best way to ensure affordability and protect customers against high volatility in the short-term market is to provide an enhanced customer contracting framework enabling sufficient possibilities to hedge and contract (especially for the long-term).