The future of the supply and pricing of electricity in the EU

Background

This opinion builds on the EESC’s previous work carried out on the electricity market reform and cross-border infrastructure planning and will further examine proposals for a new market organisation, both in terms of supply and demand, together with the increase in private generators (such as prosumers and cooperatives), the desirability of local and regional flexible markets, and the increase in large storage capacities.

The opinion will also assess the viability of a government-established "E-facility" and will take into consideration the evolution of prices during the 2023-2024 winter and compare it to the peaks in the 2022-2023 winter.

Key points

The EESC:

• is convinced that the electricity market should be reformed in such a way that it meets the objective of climate neutrality by 2050, combined with the objectives of security of supply and stable and affordable prices, as well as ensuring the right to energy for the protection of vulnerable groups.
• advocates a model of government regulation where necessary and private entrepreneurship where possible, as an E-facility that could take the form of a company set up by the government that will play the role of market maker.
• believes that small-scale electricity generation must be encouraged to keep the price of electricity affordable for consumers and to increase the flexibility options of the grids.
• thinks that with the expected doubling of prices, the cost of electricity in the run-up to 2030 and beyond will require governments to revisit their policy for the taxation added onto the supply of electricity to consumers.

Additional information

Section: Transport, Energy, Infrastructure and the Information Society (TEN)

Opinion number: TEN/837

Opinion type: Own-initiative

Rapporteur: Jan Dirx (Group III - The Netherlands)

Co-rapporteur: Thomas Kattnig (Group II - Austria)

Date of adoption by section: 11 December 2024

Result of the vote: 62 in favour, 0 against, 1 abstention

Date of adoption in plenary: 22-23 January 2025

Result of the vote: 185 in favour, 3 against, 3 abstentions

Contact

Marco Pezzani

Press Officer

Tel.: +32 2 546 9793 | Mob: +32 470 881 903

E-mail: marco.pezzani@eesc.europa.eu

Maja Radman

Administrator

Tel.: +32 546 9051

E-mail: maja.radman@eesc.europa.eu