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euractiv | Berlin, Brussels join calls for 'fundamental reform' of EU power market
The goal of the reform is "to decouple the development of end-customer prices for electricity from the rising price of gas," the spokesperson added.
"Electricity is produced today at a price that is much lower than the price at which electricity and gas are sold. There is no longer any link between the cost of production and the selling price. This European electricity price formation system needs to be reviewed," [BE energy minister, Tinne Van der Straeten] wrote on Twitter.
France and Spain were the first to call for a radical overhaul of the current marginal pricing system for electricity, with Madrid asking for "structural solutions" at the European level to decouple gas and electricity markets. They were backed by the leaders of Italy, Portugal and Greece, who urged the EU executive to address the "contagion effect" of high gas prices on electricity markets. Yet, the German plan amounts to a rejection of a Greek proposal that was outlined in the summer, government sources told EURACTIV.
EUI | The end of the long-term contracts era: which consequences for the EU Gas Market?, 31 May 2017
Long-term contracts (LTCs) used to be the most commonly used supply agreements in the gas sector and necessary to ensure the security of supply.  Indeed, the current EU gas infrastructures often reflect the geography of existing LTCs.

But, as the EU gas market has undergone intense structural changes for the past 10 years, LTCs may no longer represent the most adequate instrument to comply with the market's new requirements. Furthermore, according to a recent study of the European Commission, Cedigaz and ENTSOG, the existing long-term commodity contracts are expected to terminate in the course of the next 20 years. ...

European Commission Moves to Ban Long-Term Natural Gas Contracts After 2049, 20 Dec 2021
by Cat on Mon Aug 29th, 2022 at 06:54:34 PM EST
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