Internal Electricity Market - Part 2 (Regulation)

The EU Commission wants to strengthen competition on the wholesale electricity markets. Cross-border power flows in the EU will also be increased. In cep's view, banning Member States from intervening in price formation on the wholesale electricity markets increases competition amongst electricity producers.


Uniform EU rules on the design of capacity mechanisms may reduce distortions of competition in the internal market. However, cep criticises the fact that participation in capacity mechanisms is to be restricted to power plants with lower CO2 intensity because rather than reducing CO2 emissions, this only shifts the saved CO2 emissions to other industrial sectors.