European Commission President Ursula von der Leyen has acknowledged that the EU electricity market is “no longer functioning” and that major reforms are needed.
In particular, as reported by Euractiv, answering questions in the European Parliament on Tuesday, the President of the Commission acknowledged that the current measures to deal with rising energy prices have failed to address the structural problems in the EU electricity market.
“Indeed electricity prices – energy prices – have skyrocketed. And we are doing a lot for that,” von der Leyen said, referring to the Commission’s “toolbox” presented in the autumn, which allows EU countries to tax the profits of the companies in the sector and to subsidize the energy bills for vulnerable households and businesses.
However, she emphasized that the ” it was low.
“Today the market is completely different. Renewable energy sources are the most economical and the cheapest,” he explained.
“The existing system is no longer working. We need to reform it. We need to adapt it to the new reality of renewable energy sources,” she said in Strasbourg.
She added: “This task has now been taken over by the Commission. This is not a trivial matter, it is a huge reform. It will take time, we have to think about it but we have to move forward to adapt the electricity market to the current conditions.”
Source: Capital
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