Members of the European Parliament (MEPs) of the Industry, Research and Energy Committee have approved a plan to reform the electricity market in Europe. The reform, intended to make the electricity market stable, affordable and sustainable, received the support of the Parliament’s Industry, Research and Energy Committee and was backed by 55 MEPs, while 15 voted against and 2 abstained. The Energy Committee also backed the reform, paving the way for final negotiations with EU countries.
In their amendments to the draft legislation, MEPs propose to further strengthen consumer protection against volatile prices. Consumers should have the right to fixed-price contracts, dynamic price contracts, as well as more key information on the options they sign up to, banning suppliers from being able to unilaterally change the terms of a contract. MEPs also advocate that EU countries prohibit suppliers from cutting the electricity supply of vulnerable customers, including during disputes between suppliers and customers, and prevent suppliers from requiring these customers to use prepayment systems.
In addition, the Committee backed a wider use of “Contracts for Difference” (CFDs) to encourage energy investments and suggest leaving the door open for equivalent support schemes after approval by the Commission. It abolished the revenue cap for renewable and nuclear power producers.
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