EU Seeks to Cut Power Price Volatility in Draft Market Reform
- EU Commission to propose promoting power purchase agreements
- Ovehaul would not change power market’s marginal pricing model
This article is for subscribers only.
The European Union plans to encourage governments and companies to use more stable, long-term power market contracts to avoid massive price swings as part of a reform demanded by member states following an unprecedented energy crisis
The EU’s executive arm wants to keep the marginal pricing model and avoid drastic changes to the market design in a bid to ensure predictability and keep electricity flowing freely across the region, according to a draft of the overhaul seen by Bloomberg News on Tuesday. The European Commission’s proposal is due to be unveiled on March 16.