EU plans reforms to shield household bills from massive market swings

Top objectives include shielding consumers from soaring prices and spurring the development of renewable energy

The goal of the reform is to make the energy market more resilient after the expiration of emergency tools adopted to shield the impact of gas supply cuts by Russia, which was formerly Europe’s biggest provider.

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 the unprecedented energy crisis[/ur].

The European Commission 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 continent, according to a draft plan. The Commission’s proposal is due to be unveiled next week.