The European Commission is working on an “emergency intervention” in the electricity market.
Commission President Ursula von der Leyen said the market is “no longer fit for purpose” following massive price spikes in recent weeks.
“The skyrocketing electricity prices are now exposing, for different reasons, the limitations of our current electricity market design,” she said.
“It was developed under completely different circumstances and for completely different purposes. It is no longer fit for purpose.
“That is why we, the Commission, are now working on an emergency intervention and a structural reform of the electricity market. We need a new market model for electricity that really functions and brings us back into balance.”
Von der Leyen added that a massive expansion of renewables will be the only way to end the era of Russian fossil fuels in Europe.
“With freedom from blackmail will come greater power to defend global rules. That has to be our next strategic approach. Ending our dependency on Russian fossil fuels is only the first step,” she said.