Spain, Netherlands back quick deal on EU power market reform

European Union countries' energy ministers are meeting in Stockholm on Monday to debate the upcoming plans, which aim to tweak the market to stop short-term swings in fossil fuel prices from wreaking havoc on European consumers' energy bills.

However, the plans have already stirred disagreement among EU countries on how far to reform the market - with Spain among those calling for substantial changes to align the system with Europe's shift to green energy, and the Netherlands in the camp of countries wary that major upheaval could deter much-needed investment in the energy sector.

"Timing is key. And sometimes, not being in time is a disaster," Spain's Energy Minister Teresa Ribera told Reuters on the sidelines of the EU meeting, adding reforms should be agreed before European Parliament elections in mid-2024.

Ribera said the reform could form part of Europe's response to the United States' huge Inflation Reduction Act package of subsidies for green industries.

"For the time being, the single element that makes the highest difference in terms of competitiveness between the US and Europe is the cost of energy," she said.

Negotiations on major EU legislation, which require approval from EU countries and the EU Parliament, can take two years - sometimes, more. The European Commission will propose the reforms next month.

 

REUTERS