Eurofer criticizes reform presented at EU commission

Eurofer was critical of the European Commission's proposed reform of the EU electricity market for failing to clarify how industrial energy-intensive sectors could reach the large volumes of low-carbon and renewable electricity needed for decarbonisation.

The Electricity Market Design reform was announced at the Commission meeting last Tuesday. In the commission, it was emphasized that Russia's attack on Ukraine revealed a number of shortcomings in the current system that need to be addressed. Another key item was the extension of long-term processes, such as energy purchase agreements, to separate consumer prices from short-term markets.

Another issue discussed within the Commission was that EU member states should use two-way contracts when subsidizing new investments in low-carbon and renewable generation. On the other hand, the issue of reflecting the revenues from these contracts back to the end consumers in order to reduce their electricity bills was emphasized.
However, Eurofer criticized the planned reform, saying it was costly, risky as it was not a quick solution to secure fossil-free electricity and energy-intensive industries.

As a result of the commission, Eurofer was organized on behalf of the sector, if the energy-intensive sectors are necessary; He explained that he should turn to exceptional situations such as exemption from fees or taxes and that other non-market-based tools can be considered as a solution proposal so that the industry, which is alone with a global competition, can be ready for competition.