Proposals for a regulation and directive on the internal market for electricity

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Electricity market.jpg © European Parliament

In end 2016 the Commission put forward proposals for the EU energy market design. The proposal for a regulation on the internal market for electricity (COM(2016)0861) recasts Regulation (EU) No 714/2009. The proposal for a directive on common rules for the internal market in electricity (COM(2016) 0864) recasts Directive 2009/72/EC.

The recast regulation is aimed at making the electricity market fit for flexibility, decarbonisation and innovation by providing for undistorted market signals. It revises the rules for electricity trading, clarifies the responsibilities of the market participants, and defines principles for assessing capacity needs and for market-based capacity mechanisms.

The recast directive focuses on the role of customers in the electricity market and is aimed at a more competitive, customer-centred, flexible and non-discriminatory EU electricity market with market-based supply prices. It would strengthen and expand the rights of individual customers and energy communities, address energy poverty and clarify the roles and responsibilities of market participants and regulators.

Rapporteur: Krišjānis Kariņš (EPP)
Shadows: Martina Werner (S&D), Zdzisław Krasnodębski (ECR), Kaja Kallas (ALDE), Claude Turmes (Greens/EFA), Cornelia Ernst (GUE-NGL), Dario Tamburrano (EFDD), Barbara Kappel (ENF)

ITRE documents

The reports follow a "market first" approach, creating a level playing field for all participants and moving away from market-distorting subsidies. For the Rapporteur, bidding zones should be stable over time and as large as possible. Regional cooperation should be strengthened, but the responsibility for the security of the system should remain with the transmission system operators. Finally, he proposes changes so that the consumer can make well-informed decisions and switch suppliers quickly.