[ParlTrack]

Martin SCHIRDEWAN, José GUSMÃO, Manon AUBRY

Proposal for a regulation
Recital 3 a (new)

(3a) The skyrocketing electricity prices exposed the inadequacy of the current electricity market design, specifically the shortcomings of the merit order system and of the liberalisation and financialisation of the electricity market in general. The new electricity framework should pave the way for the provision of electricity as a public good based on renewable energy sources with the objective of guaranteeing access and affordability to households, ensuring security of supply and preventing speculation, inflationary pressures and unjust windfall profits.

2023/06/08
Committee: ECON

Martin SCHIRDEWAN, José GUSMÃO, Manon AUBRY

Proposal for a regulation
Recital 19

(19) Consumers and suppliers need effective and efficient forward markets to cover their long-term price exposure and decrease the dependence on short-term prices. To ensure that energy customers all over the EU can fully benefit from the advantages of integrated electricity markets and competition across the Union, the functioning of the Union’s electricity forward market should be improved via the establishment of regional virtual hubs with a view to overcome the existing market fragmentation and the low liquidity experienced in many bidding zones. Regional virtual hubs should cover multiple bidding zones while ensuring an adequate price correlation. Some bidding zones may not be covered by a virtual hub in terms of contributing to the hub reference price. However, market participants from these bidding zones should still be able to hedge through a hub.deleted

2023/06/08
Committee: ECON

Martin SCHIRDEWAN, José GUSMÃO, Manon AUBRY

Proposal for a regulation
Recital 21

(21) To enhance the possibilities of market participants for hedging, the role of the single allocation platform established in accordance with Commission Regulation (EU) 2016/1719 should be expanded. The single allocation platform should offer trading of financial long-term transmission rights between the different bidding zones and the regional virtual hubs. The orders submitted by market participants for financial transmission rights shall be matched by a simultaneous allocation of long term cross zonal capacity. Such matching and allocation should be performed on a regular basis, to ensure enough liquidity and, hence, efficient hedging possibilities to market participants. The long-term transmission rights should be issued with frequent maturities (ranging from month ahead to at least three years ahead), in order to be aligned with the typical hedging time horizon of market participants. The single allocation platform should be subject to monitoring and enforcement to ensure that it performs its tasks properly.deleted

2023/06/08
Committee: ECON

Martin SCHIRDEWAN, José GUSMÃO, Manon AUBRY

Proposal for a regulation
Recital 53

(53) Public interventions in price setting for the supply of electricity constitute, in principle, a market- distortive measure. Such interventions may therefore only be carried out as public service obligations and are subject to specific conditions. Under this Directive regulated prices are possible for energy poor and vulnerable households, including below costs, and, as a transition measure, for households and micro- enterprises. In times of crisis, when wholesale and retail electricity prices increase significantly, and this is having a negative impact on the wider economy, Member States should be allowed to extend, temporarily, the application of regulated prices also to SMEs. For both households and SMEs, Member States should be temporarily allowed to set regulated prices below costs as long as this does not create distortion between suppliers and suppliers are compensated for the costs of supplying below cost. However, it needs to be ensured that such price regulation is targeted and does not create incentives to increase consumption. Hence, such price regulation should be limited to 80% of median household consumption for households, and 70% of the previous year’s consumption for SMEs. The Commission should determine when such an electricity price crisis exists and consequently when this possibility becomes applicable. The Commission should also specify the validity of that determination, during which the temporary extension of regulated prices applies, which may be for up to one year. To the extent that any of the measures envisaged by the present Regulation constitute State aid, the provisions concerning such measures are without prejudice to the application of Articles 107 and 108 TFEU. Electricity should be considered an essential service, a common, necessary to ensure a life with dignity that no one should be deprived of. Access to a basic amount of energy, covering the basic needs of households in terms of health and dignity, should be considered a basic right and must be provided for free or an affordable price. This amount of energy should guarantee adequate heating, cooling, light and energy for power appliances that are essential services ensuring a decent standard of living and health. 1a _________________ 1a https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32 020H1563 Commission Recommendation EU 2020/1563 of 14/10/2020 on energy poverty

2023/06/08
Committee: ECON

Martin SCHIRDEWAN, José GUSMÃO, Manon AUBRY

Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point a

Regulation (EU) 2019/943
Article 1 – point b

(b) set fundamental principles for ~~well- functioning, integrated electricity markets, which allow all resource providers and electricity customers non- discriminatory market access, enable the development of forward~~the provision of electricity as a public good based on renewable sources of energy in order to ensure affordability and accessibility of electricity, markets to allow suppliers and consumers to hedge or protect themselves against the risk of future volatility in electricity prices, empower consumers, ensure competitiveness on the global market, enhance flexibility through demand response, energy storage and other non- fossil flexibility solutions, ensure energy efficiency, facilitate aggregation of distributed demand and supply, and enable market and sectoral integration and market-based remuneration of electricity generated from renewable sourceintain security of supply, prevent inflationary pressures, avoid harmful speculative activities and windfall profits and prevent environmental damages and risks;

2023/06/08
Committee: ECON

Martin SCHIRDEWAN, José GUSMÃO, Manon AUBRY

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) 2019/943
Article 9

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2023/06/08
Committee: ECON

Martin SCHIRDEWAN, Manon AUBRY