New European Electricity Market Reform Promises to Protect Vulnerable Consumers and Stave Off Energy Crisis Amid Russian Invasion

As the Russian invasion of Ukraine caused a sudden surge in energy prices, concerns about an impending energy crisis have arisen. To prevent citizens from facing excessive volatility in electricity prices, the European Parliament has approved a new electricity market reform. The reform aims to provide more protection to vulnerable consumers and allow for public intervention during energy crises.

The reform has received strong support in the European Parliament, with two texts, a regulation and a directive, passing with large majorities. Commissioner for Justice Didier Reynders praised the reform for making the energy system more resilient and competitive, leading to lower bills for consumers and improved economic competitiveness.

Spanish socialist Nicolás González Casares emphasized that while the benefits of the reform are already being seen in the short term, the real impact will be visible in the medium and long term. He highlighted that one of the key aspects of the reform is democratizing energy by placing consumers at the center of electricity market design. Consumers, including small and medium-sized businesses, will have access to affordable and stable electricity prices, enhancing transparency and consumer rights. The reform also strengthens consumer protections such as access to fixed-price contracts and intervention in cases of crisis.

Overall, this new electricity market reform represents a step towards a more sustainable and resilient energy future in Europe by addressing challenges facing