EU response to the energy crisis

What? ESMA and ACER published preliminary data reports studying the effects of the market correction mechanism on the EU natural gas market, while the European Commission launched a consultation on the reform of the EU’s electricity market design. 

When? 23 January 2023

Why? In a special address at the World Economic Forum in Davos earlier in January, European Commission President Ursula von der Leyen spoke of the EU’s reaction to Russia’s military aggression against Ukraine, and in particular how it has reduced its dependency on Russian fossil fuels, which had resulted in price hikes and supply squeezes. As part of its work to tackle the energy crisis, the EU has adopted the Market Correction Mechanism (MCM) Regulation. It had required the European Securities and Markets Authority (ESMA) and the Agency for the Cooperation of Energy Regulators (ACER) to publish preliminary data reports following the introduction of the MCM. The reports show that so far, the adoption of the regulation, which comes into effect on 1 February, has had no negative consequences on either gas or gas derivative markets. In parallel, the Commission launched a public consultation on the reform of the European Union’s electricity market design. The aim is to better protect consumers from excessive price volatility, support their access to secure energy from clean sources, and make the market more resilient.

Want to know more? Read more about the ESMA report, take part in the public consultation, and read Ms Von der Leyen’s speech at Davos.