Inefficient bidding zones within the European electricity market
8.2.2023
Priority question for written answer P-000400/2023
to the Commission
Rule 138
Karin Karlsbro (Renew)
The bidding zones for electricity have to be set up in such a way that ensures that the European electricity market is efficient and non-discriminatory. As a result, Sweden was forced to divide the country into multiple bidding zones by the Commission Decision of 14 April 2010 (Case 39351).
However, despite assessments from the European Union Agency for the Cooperation of Energy Regulators (ACER), there are still many geographically large bidding zones in Europe which are inefficient. These zones risk distorting the electricity market and also affect the price in neighbouring and geographically close bidding zones.
The case of the German-Luxembourgish bidding zone is one such zone where the majority of the electricity production is in the north, while the demand is greatest in the south. This discrepancy affects prices in Germany, but also affects prices in the southern bidding zones of Sweden.
- 1.How will the Commission follow up on the assessments from ACER if the Transmission System Operators (TSOs) do not change the bidding zones as proposed and what would the timelines be for such action?
- 2.What action does the Commission take to ensure effectiveness and non-discrimination within the EU electricity market?
- 3.Will the Commission, by means of Commission decisions, require that TSOs introduce more effective bidding zones?
Submitted: 8.2.2023