Progress towards Completing the Internal Energy Market – 2014
Important progress is being achieved in completing the internal energy market according to the European Commission's Internal Energy Market progress report adopted on 13 October 2014. The package not only takes stock of the main achievements and outstanding challenges, but also reports on the trends and developments of the developing EU Energy Markets. Moreover, detailed analyses have been carried and published in separate reports on investments, unbundling and enforcement. Finally, 28 country-specific reports have been adopted containing individual assessments of the state of the energy markets in the Member States.
Success of current policies
Energy market integration in the EU has delivered many positive results already:
What still needs to be done
But to complete the internal energy market, further steps need to be taken and new challenges need to be addressed together. In particular:
Subsidies and costs of EU energy
Pilot project for joint electricity trading leads the Internal Energy Market 2014 to progress
Grid operators and power exchanges from 14 EU Member States (Belgium, Denmark, Estonia, Finland, France, Germany, Austria, UK, Latvia, Lithuania, Luxembourg, the Netherlands, Poland and Sweden) plus Norway inaugurated on February 4 a pilot project for joint electricity trading, so-called day-ahead market coupling. The project, which is a milestone on the way towards a European Electricity Market, had been jointly initiated by the EU Commission, regulators, grid operators and power exchanges in North-Western Europe (NWE). NWE market coupling combines all bids and offers in a region and creates a large integrated electricity market in the area concerned, combining 75% of today's electricity consumption in the EU. The Commission prepares an EU Regulation that will make market coupling binding in the entire EU, leading to important costs savings for the benefit of European customers. Read more: http://europa.eu/rapid/press-release_MEX-14-0204_en.htm
Guidance to Member States on state intervention in electricity markets
5 November 2013. In some cases, state intervention in energy markets may be necessary in order to ensure security of supply and to achieve climate objectives. To avoid adding extra costs for consumers and distorting the functioning of the internal electricity market, public intervention has to be designed with great care.
The Commission gives guidance to Member States on how to:
Staff Working Documents
On 15 November 2012, the European Commission presented a Communication assessing the state of play of the internal energy market, to be completed by 2014.
The Communication encourages Member States to step up efforts, highlighting the benefits of a truly integrated European market for citizens and business. The document also identifies the need for further action in a number of areas including consumer protection, enforcing the existing rules and investing in the modernisation of energy infrastructure.
The Commission will work with Member States to empower consumers and to phase out state interventions which distort markets.
Together with the Communication, we are launching a Public Consultation on delivering a more coordinated approach to generation adequacy and security of supply in the internal electricity market and ensuring that any state interventions in this regard are well designed and effective.