Brussels announces "emergency intervention" in the electricity market

The European Commission (EC) announced today that it is working on an "emergency intervention" and structural reform of the electricity market in view of the fact that the current model was designed under circumstances that no longer apply.

"The soaring electricity prices are exposing the limitations of our current electricity market design," European Commission President Ursula Von der Leyen acknowledged today, announcing during a speech in Slovenia that work is already underway on an "emergency intervention" to reform the market.

Von der Leyen pointed out that the electricity market was developed under different circumstances and for different purposes and is therefore "no longer fit for purpose".

"And that is why we in the Commission are now working on an emergency intervention and structural reform of the electricity market," she said during her speech at the Strategic Forum in the Slovenian city of Bled.

Von der Leyen spoke of the need for such changes in the context of the EU's dependence on Russian gas, and the need to reduce it.

She warned that it is necessary to prepare "for a possible total interruption of Russian gas", in the context of the war in Ukraine over the Russian invasion.

She said the EU has managed to increase gas imports from other suppliers "at lightning speed" and member states have been asked to reduce their consumption by 15% to increase reserves.

He also stressed that the best way to break free from Russia's energy dependence is to accelerate the transition to green energy and recalled that the RePowerEU programme will allocate 300 billion euros to boost these changes.

"So the era of Russian fossil fuels in Europe is coming to an end. And with the release of blackmail will come greater power to defend global rules," he said.