The EU Commission is working on proposals to decouple gas prices and renewable energy prices.
The marginal energy price model has made wholesale electricity expensive in times of costly natural gas.The European Commission is under “very strong political pressure” to overhaul the market to cut the soaring bills for consumers.The European Union is working on proposals designed to decouple gas prices and renewable energy prices in what could be a major overhaul in the bloc’s power market amid an unprecedented crisis.
“However, in the current energy crisis, marginal pricing means that wholesale electricity prices are largely set by the price of gas ,” the European Parliament said last year. A draft proposal seen by FT suggests that the Commission could offer to extend the windfall tax on renewable energy companies, with proceeds from the levy passed on to EU consumers.
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