The current European electricity market does not require a radical redesign.
That’s according to the latest report from the EU Agency for the Cooperation of Energy Regulators (ACER) which suggests the current wholesale electricity market design “ensures efficient and secure electricity supply under relatively normal market conditions”.
In response to gas price hikes, the European Commission asked the agency to assess if Europe’s electricity market is working properly.
The ACER found that the current electricity market design is not to blame for the current crisis.
On the contrary, the European regulators believe that the market rules in place have to some extent helped mitigate the current crisis, thus avoiding electricity curtailment or even blackouts in certain quarters.
Although the market’s structure is worth keeping, some improvements could prove key to shielding customers and businesses from volatile prices, according to the report.
Yesterday, the World Bank predicted that energy prices will remain at historically high levels until the end of 2024.
The ACER has also proposed a series of measures for policymakers to future-proof the electricity market.
It recommends more protection for vulnerable customers, market interventions in situations of “extreme duress” and measures designed to improve future liquidity.
