The electricity market has to be reformed in such a way that it does more than just meet the 2050 climate-neutrality targets. It is vital to ensure security of supply, stable and affordable prices and the right to energy in order to protect vulnerable groups, says the European Economic and Social Committee.

In the opinion The future of the supply and pricing of electricity in the EU , issued in January and drafted by Jan Dirx and Thomas Kattnig, the EESC advocates a model of government regulation where necessary and private entrepreneurship where possible, and recommends an E-facility.

This could take the form of a company set up by the government that acts as a market maker in the electricity market, thus achieving the objectives of climate neutrality, security of supply and stable and affordable prices.

According to the Committee, the changes needed in the electricity market should be carried out in three stages:

• Phase 1 – from now to 2030

  The E-facility will grow its portfolio with a mix of (non-CO₂) power generation. During this period, power trading will take place on a day-ahead trading basis, however, the influence of the E-facility on the market will grow.

• Phase 2 – from 2030 to 2040

  The E-facility will achieve its market maker position and control an appropriate part of the supply side of the market through supply contracts. Day-ahead trading will adjust during this period accordingly.

• Phase 3 – from 2040 to 2050

  The E-facility will optimise the supply side of electricity to ensure, from 2050, a sustainable long-term supply of electricity with net-zero greenhouse gas emissions at stable and predictable prices. (mp)