On Tuesday 17 October 2023, Luxembourg hosted the Council of EU Energy Ministers, during which those present - including Luxembourg's Minister for Energy, Claude Turmes - reached an agreement on new rules for the EU's electricity market.
According to Luxembourg's Ministry of Energy and Spatial Planning, these new rules aim to protect consumers from peaks of excessive volatility observed in electricity markets and to allow them to benefit from more stable prices.
Furthermore, these measures will seek to limit excessive profits of electricity producers when market prices are high, by establishing a redistribution mechanism towards consumers. It will be up to the European Commission to ensure that redistribution towards industrialists takes place in compliance with the principle of healthy and fair competition in the internal market, noted the ministry.
Following this meeting, the Spanish Presidency of the Council of the EU will hold negotiations with the European Parliament to reach a final agreement.
The Council also agreed that two-way contracts for difference (CfDs) would be mandatory when public funding is involved in long-term contracts (with some exceptions). However, as requested by Luxembourg, CfDs will only be compulsory for new installations and not for extending the life of existing power plants.
