EU reform adopted

Electricity price to become less dependent on gas price

The EU Parliament wants to make the price of electricity more independent of the price of gas.(Bild: Krone KREATIV)

The EU Parliament passed a reform of the electricity markets on Thursday. The aim is to make the price of electricity less dependent on the price of gas and fossil fuels, for example. Consumers will also be given more rights.

In future, they will be able to decide whether they want fixed or dynamic, market-oriented electricity prices when concluding a contract. Electricity suppliers, in turn, will no longer be allowed to unilaterally change the terms of the contract or the contract itself. If prices are currently very high and certain other conditions are met, the EU can declare a regional or EU-wide electricity price crisis. This allows measures to be taken for smaller companies and energy-intensive industrial customers.

In future, electricity suppliers will no longer be allowed to unilaterally change contract conditions.(Bild: Krone KREATIV)

Promotion of renewable energies
Another aspect of the reform is the promotion of renewable energies. Companies that invest in these or nuclear energy sources will receive minimum prices if market prices fall too sharply. If the market price is above a certain limit, the surplus profits go to the state. 

In future, municipalities and municipal utilities are to focus more on gas alternatives such as district heating. Overall, the reform is intended to make electricity prices less dependent on price fluctuations, better protect people from peak electricity prices and accelerate the expansion of renewable energies (see video above). An agreement and a directive were agreed.

Criticism: "No end to financial speculation"
 "With the new regulations for the EU electricity market, we are making the energy bills of consumers and companies less dependent on short-term price fluctuations. We are securing consumers' access to stable, affordable and clean energy (...)", said ÖVP delegation leader Angelika Winzig. Approval also came from the NEOS, who see this as an opportunity to "free ourselves from dependence on Putin's gas".

Criticism, on the other hand, came from the globalization-critical network Attac. "Both electricity and gas should continue to be traded via speculative futures and non-transparent energy exchanges. An end to financial speculation and profit maximization is not in sight," criticized Max Hollweg from Attac Austria.