Commodities Economy News

EU discusses views on electricity market prices

Sponsored

Kadri Simson, the European Commissioner for Energy, has confirmed that Community Executive is “aware of the discussions that are taking place in Spain in relation to the recent changes in wholesale electricity prices and the measures taken by the Government to reduce the overall cost of bills.”

The Commission is in contact with the Spanish authorities and is aware of their view on the design of the electricity market,” says the European Energy Commissioner in reply to MEP José Ramón Bauzá’s question about complaints made by the Spanish government against the design of the European electricity market.

electricity prices issue

MetaNews.

Servimedia has access to the Commissioner’s response, which says that wholesale electricity prices were at historic lows during the early stages of the pandemic, so some increase could be expected.

“High” prices, he continues, result from a number of factors including recovery of economic activity and high seasonal demand, which must be added to the rise in Emissions Trading Scheme prices and the price of gas largely due to demand for liquefied natural gas from Asia.

“This may affect electricity bills.”. However, due to the increasing penetration of renewables, contracts where the price of electricity follows the wholesale price tend to be more affordable for consumers throughout the year,” notes Simson.

“EU law also provides protections for vulnerable households and those living in energy poverty,” said the European Energy Minister, who explained that the electricity bill takes into account not only the price of production, but also the costs of transport and distribution (network costs), as well as taxes and levies. “An overall efficient electricity market design is the most effective means of reducing total system costs and bills,” says the Commissioner.

Sponsored
Avatar

Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
Follow Me:

Related Posts