Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Nine EU states oppose energy market overhaul in response to high prices

Published 01/12/2021, 16:31
Updated 01/12/2021, 17:21
© Reuters. FILE PHOTO: EU flags flutter in front of the European Commission headquarters in Brussels, Belgium October 2, 2019. REUTERS/Yves Herman/File Photo

© Reuters. FILE PHOTO: EU flags flutter in front of the European Commission headquarters in Brussels, Belgium October 2, 2019. REUTERS/Yves Herman/File Photo

By Kate Abnett

BRUSSELS (Reuters) - Germany, Denmark and seven other EU countries have opposed overhauling the bloc's electricity market in response to high energy prices, a move they said could increase the cost of adding renewable energy to the system in the long run, ahead of a meeting of EU ministers on Thursday.

Energy ministers from the European Union's 27 member countries will meet on Thursday to debate their response to energy prices that surged to record levels in autumn as tight gas supplies collided with soaring demand in economies recovering from the COVID-19 pandemic.

In a joint statement, the nine countries urged the EU to stick with its current energy market design. Price caps or different systems of setting national power prices could discourage electricity trade between EU countries and undermine incentives to add low-cost renewable energy to the system in the long run, they said.

"We cannot support any measure that would represent a departure from the competitive principles of our electricity and gas market design," the countries said.

"Deviating from these principles would undermine the cost-effective decarbonisation of our energy system, jeopardise affordability and risk security of supply."

The statement was signed by Austria, Denmark, Estonia, Finland, Germany, Ireland, Luxembourg, Latvia and the Netherlands.

EU countries have splintered over how to respond to high prices, with Spain and France among those seeking an overhaul of EU energy regulations. Madrid has led calls for EU countries to buy gas jointly to form strategic reserves.

Other governments are wary of long-lasting regulatory reforms to respond to what they say could be short-term price spikes. Many EU countries have already introduced temporary measures, such as subsidies for households and tax breaks, to lower consumer bills.

© Reuters. FILE PHOTO: EU flags flutter in front of the European Commission headquarters in Brussels, Belgium October 2, 2019. REUTERS/Yves Herman/File Photo

While gas prices have retreated from the record highs recorded in early October, they are still relatively high in countries including the Netherlands, where prices began climbing again in recent weeks amid forecasts of a cold weather.

(This story refiles to fix capital letter in paragraph 2)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.