The European Parliament has voted in favor of approving the EU’s electricity and gas market reforms, which are aimed at addressing energy supply problems and high prices. These reforms aim to protect consumers from price spikes by allowing them to choose fixed-price or dynamic contracts, prevent energy companies from unilaterally changing contracts, and ensure that vulnerable consumers are not cut off from energy distribution.
In the electricity market reform, there is a provision for public authorities to compensate energy producers when prices fall too low and for public operators to receive a price above a certain ceiling. Member states can declare an electricity price crisis under certain conditions and set temporary prices for small businesses and energy-intensive industries.
The gas market also received approval from the parliament, with efforts focused on transitioning away from coal and introducing low-carbon gases such as hydrogen and biomethane. The reforms aim to enhance energy security during geopolitical turmoil, limit gas imports from Russia and Belarus, and establish a common gas procurement system.
Both the electricity and gas market reforms must be approved by the European Parliament and the EU member states before officially coming into force. These reforms are part of the ongoing transition away from fossil fuels to ensure a sustainable and secure energy future for the EU region.
