The European Union put forward a plan on Tuesday to make electricity bills “less dependent” on fossil fuel prices, with the aim of reducing the risk of price hikes, as happened after Russia’s invasion of Ukraine.
The European Union put forward a plan on Tuesday to make electricity bills “less dependent” on fossil fuel prices, with the aim of reducing the risk of price hikes, as happened after Russia’s invasion of Ukraine.
Brussels has been working to overhaul its electricity market since Russia’s war in Ukraine last year sent prices skyrocketing for consumers and businesses.
Disagreements among the 27 EU member states, particularly over the role of nuclear energy, could complicate negotiations over this text even if the European Commission hopes to reach an agreement by winter.
Brussels has been working to reform its electricity market since Russia’s war in Ukraine last year sent prices skyrocketing for consumers and businesses.
But instead of an overhaul and strict gas/electricity decoupling, which France and Spain initially called for, the European Commission intends to develop long-term contracts for “low-carbon energy” that would allow lower bills for consumers while providing predictable revenues for suppliers.
Likewise, the project proposed on Tuesday, which will be negotiated between Member States and members of the European Parliament, through these “long-term contracts” aims to encourage investments in clean energies, and thus reduce the impact of gas prices.
