- EU energy ministers meet
- To discuss the rising cost of gas
- Spain plans to exit the EU common pricing policy
European Union (EU) energy ministers will meet today to discuss the rising cost of gas. The meeting comes as Spain plans to exit the EU common electricity pricing policy to establish its own pricing methodology. Spain and France have urged for a redesign of the current electricity market.
The current EU electricity market structure wholesale price is set by the last power plant needed to meet the overall electricity demand. Spain argues that this price mechanism is unfair and negatively impacts the goal of the energy transition. Under this price mechanism, cheap renewable energy ends up being sold at higher prices than fossil fuels.
Despite high European energy costs, nine countries, including Germany, Denmark, Ireland, Austria, Germany, Denmark, Estonia, Finland, Ireland, Luxembourg, Latvia and the Netherlands, have indicated that they would not support a reform of the EU electricity market. In a joint statement, they said they “…cannot support any measure that conflicts with the internal gas and electricity market”.
“As the price spikes have global drivers, we should be very careful before interfering in the design of internal energy markets,” the statement read.
The European Commission has stated it would investigate the concerns raised by Spain and France.