EU puts an end to its energy market crisis measures

Fossil

05/06/2023 14:46

BRUSSELS, June 5 (Reuters) - The European Commission
said on Monday it had decided not to prolong emergency measures
introduced last year to shield consumers from soaring energy
prices, adding those measures had helped to contribute to a
calming of European energy markets.
    At the end of 2022, the 27-member European Union was in the
midst of an acute energy crisis fuelled by Russia's invasion of
Ukraine, with member states then ploughing hundreds of billions
of euros into tax cuts, handouts and subsidies to tackle the
crisis.
    "The Commission confirms that it will not propose a
prolongation of these crisis measures," it said in a statement,
reminding these included electricity demand reduction measures,
revenue caps for power plants and retail price setting rules.
    It added that electricity prices have now decreased to less
than 80 EUR/MWh and gas prices have not only fallen but also
stabilised, to the extent that the electricity price spikes
observed throughout 2022 are considered "less probable to occur
in the upcoming winter".
    The Commission also said that some aspects of the emergency
measures had been included in its proposals for longer-term
structural adjustments in the electricity market design.
    Those proposals aim to try to increase the use of
fixed-price power contracts, shield consumers from price spikes
and speed up the shift to renewable energy.

 (Reporting by Benoit Van Overstraeten; Editing by GV De Clercq)
 ((benoit.vanoverstraeten@thomsonreuters.com; +33149495339;))