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BERLIN (AP) \u2014 The head of the European Union\u2019s executive branch and Germany\u2019s chancellor on Monday pledged a reform of the continent\u2019s electricity market to help bring down power prices that have been pushed higher by skyrocketing gas prices.<\/p>\n
European Commission President Ursula von der Leyen said in a speech in Bled, Slovenia, that soaring electricity prices \u201care now exposing the limitations of our current electricity market design.\u201d<\/p>\n
\u201cIt was developed for different circumstances,\u201d von der Leyen said. \u201cThat is why we are now working on an emergency intervention and a structural reform of the electricity market.\u201d<\/p>\n
The continent\u2019s electricity market is underpinned by a \u201cmerit order\u201d system in which the power stations offering the cheapest electricity are tapped first, but prices are determined by the last and most expensive power stations to be tapped \u2014 at present, those using gas, whose price has risen sharply following cuts in supplies by Russia to several European countries amid the war in Ukraine.<\/p>\n
German Chancellor Olaf Scholz, visiting Prague on Monday, said that the question of how the European electricity market can be redesigned \u201cso that we no longer have to bear these high prices we are currently seeing\u201d took up much of his meeting with Czech Prime Minister Petr Fiala, whose country currently holds the EU\u2019s rotating presidency. He said that \u201cwe will act together quickly.\u201d<\/p>\n
\u201cIt is necessary for us to make structural changes that contribute to prices sinking again quickly and there being a sufficient offer\u201d of electricity, Scholz said at a news conference. He added that \u201cthere is great readiness to change something, and that seems to me to be very much mutual among the heads of state and government in Europe.\u201d<\/p>\n
\u201cClearly what is currently being asked as a market price does not reflect supply and demand in the proper sense,\u201d he said.<\/p>\n
Speaking earlier in Berlin, a German economy ministry spokeswoman said that the idea is to keep the principle of the \u201cmerit order\u201d system, \u201cbut do away with the negative effects the merit order has, so that the high gas prices can no longer impact immediately and automatically on electricity prices.\u201d<\/p>\n
The aim is for customers to benefit from cheaper production prices for renewable energy, for example, spokeswoman Beate Baron said.<\/p>\n
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BERLIN (AP) \u2014 The head of the European Union\u2019s executive branch and Germany\u2019s chancellor on Monday pledged a reform of the continent\u2019s electricity market to help bring down power prices that have been pushed higher by skyrocketing gas prices. European Commission President Ursula von der Leyen said in a speech in Bled, Slovenia, that soaring […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":{"0":"post-199106","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-world"},"_links":{"self":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/posts\/199106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/comments?post=199106"}],"version-history":[{"count":0,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/posts\/199106\/revisions"}],"wp:attachment":[{"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/media?parent=199106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/categories?post=199106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arunachaltimes.in\/index.php\/wp-json\/wp\/v2\/tags?post=199106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}