EU Commision - Guidance to Member States on state intervention in electricity markets
In some cases, state intervention in energy markets may be necessary in order to ensure security of supply and to achieve climate objectives. To avoid adding extra costs for consumers and distorting the functioning of the internal electricity market, public intervention has to be designed with great care.
The Commission gives guidance to Member States on how to:
- design and reform national support schemes for renewables. As technologies mature, renewables should gradually be exposed to market prices and eventually support must be fully removed.
- design adequate generation capacities to ensure the continuous supply of electricity when generation fluctuates, for instance due to changing weather conditions. This has to be done without jeopardising the benefits the EU-wide market offers. The Commission provides a checklist which allows governments to verify the efficiency of their intervention and to improve it where necessary.
- enhance the role of consumers in the electricity market by providing them with incentives to use electricity when it is cheapest and most plentiful. Consumers can contribute to ensuring sufficient energy flow at peak times and this will help to avoid costly investments in new power plants.