The UK government has said modernisation of electricity markets across the EU is necessary to facilitate delivery of ambitious low carbon targets, but has warned a ‘one size fits all’ approach will not work.
DECC this afternoon has released the UK’s response to the European Commission consultation on Energy Market Design.
It states it agrees with the EC’s view that a “flexible” EU electricity market is necessary so that all market players, on the supply and demand side, can play an “active part.”
But it continues on to warn the EC that each member state must be consulted thoroughly on how this will work for individual countries before any changes take place.
It states: “It must be acknowledged that the reform of EU electricity markets is a complex process that needs to ensure that the diversity and specific requirements of EU Member States’ markets are carefully considered and accommodated. One-size will not fit all. Therefore we urge the Commission to discuss thoroughly with member states, regulators and all relevant stakeholders before issuing any proposals.”
DECC highlights Electricity Market Reform as a success, hailing it the “best suited vehicle” to faciltiate the UK’s transition to a low-carbon economy while “securing energy supplies at least cost to consumers.”
It continues: “Our flagship renewables support scheme, the Contract for Difference (CfD), is designed to work with the market by exposing generation to competition while minimising overcompensation. We are also amongst the first EU member states to explore cooperation mechanisms including cross border opening of our renewables support scheme.
“Our Capacity Market has been carefully designed to support and complement developments in the internal energy market and to be consistent with it and wider EU energy policies, for example the development of an active demand response, improved scarcity pricing, support for further interconnection and increased competition.”
For the full government response click here
Image: European Commission HQ (Sebastian Bertrand)
