Council and European Parliament negotiators have reached a preliminary agreement on electricity market reform. The main goal of this reform is to reduce the dependence of electricity prices on fossil fuels to protect consumers.

Among the agreed measures, it is intended to provide member states with the option to exclusively support the acquisition of new generation of renewable energy sources, when conditions allow, through power purchase agreements (PPAs). In addition, specific criteria have been established for declaring crises associated with high prices in the electricity sector.

Both agencies considered lowering electricity prices for vulnerable and disadvantaged consumers by implementing blackout protections and including provisions aimed at preventing “unjustified” distortions in the market.

The text agreed by the parties this Thursday in Strasbourg must now be officially approved and accepted by both institutions. Promoting this reform has been one of the priorities of the Spanish Presidency of the Council of the EU, which expires in January 2024.

“This agreement is great news as it will help us further reduce the EU’s dependence on Russian gas and promote fossil-free energy to reduce greenhouse gas emissions,” explained the Third Vice-President of the Government and Minister of Green Transition and Ecology. Demographic challenge, Teresa Ribera.

In addition, he indicated that the agreement will stabilize markets in the long term, accelerate the uptake of renewable and non-fossil energy sources, offer more affordable electricity to EU citizens and increase industrial competitiveness.

Socialist MEP Nicolás González Casares, for his part, celebrated the agreement “after ten hours” of negotiations, stressing that “Europe now has a socially fair electricity market structure that will better protect citizens, especially the most vulnerable, with measures that guarantee affordable prices for citizens and companies and accelerate the energy transition.”

“In addition, Parliament has achieved a market structure that takes a step forward in the democratization of energy. Parliament knows how to work at lightning speed to reach an agreement that provides answers to the many failures exposed by the energy crisis. citizens’ expectations,” he said.

The proposal is part of a wider reform of the EU’s electricity market structure, which also includes regulation aimed at improving protection against market manipulation through better supervision and transparency (REMIT), which the Twenty-Seven agreed in June.