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Single market for gas & electricity

Internal Energy Market

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:

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:

  • design and reform national support schemes for renewables. As technologies mature, renewables should gradually be exposed to market prices and eventually support must be fully removed.
  • design adequate generation capacities to ensure the continuous supply of electricity when generation fluctuates, for instance due to changing weather conditions. This has to be done without jeopardising the benefits the EU-wide market offers. The Commission provides a checklist which allows governments to verify the efficiency of their intervention and to improve it where necessary.
  • enhance the role of consumers in the electricity market by providing them with incentives to use electricity when it is cheapest and most plentiful. Consumers can contribute to ensuring sufficient energy flow at peak times and this will help to avoid costly investments in new power plants.

Related documents

Staff Working Documents

Press material

It's time to complete the internal energy market

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.

Press room

Public consultation

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.