The European Parliament and the EU Council finally reached a deal late yesterday evening for a reform of the electricity market in the European Union. The aim of the S&D negotiators has been to make the market more sustainable, decentralised and flexible, while improving affordability and price transparency for consumers.
The S&Ds managed to introduce a phasing out of polluting subsidies for coal by 2025. The Emission Performance Standard establishes a 550g limit that will apply to new power generating installations as from entry into force, and to existing installations as from 1 July 2025.
Regarding price regulation, S&Ds made sure that vulnerable and energy poor consumers can be protected through social tariffs.
S&D MEP Martina Werner MEP, who has been one of the Parliament negotiators, said:
"S&Ds prioritised the protection of consumers from abusive market practices. We strengthened provisions for out-of-court dispute resolution mechanisms, which are now mandatory, so when consumers have problems with their supplier they are not forced to go to court with expensive and time-consuming procedures.
"If we are serious about our climate goals we cannot keep subsidising polluting coal-fired power plants. Instead, that money should be used for investments in renewables, grids, and measures that add flexibility to the energy system.
"In a big victory for our group, we managed to ensure regulated prices so that member states can guarantee affordable energy prices, even if I would have preferred these to target the more vulnerable and energy-poor households; these are the customers who really need it."