EC: Regulating energy prices is particularly detrimental to the internal market


The regulation of electricity prices is particularly harmful for the internal market and contradicts the key principles of European directives, it is shown in a letter sent by the European Commission, DG Energy, to Dumitru Chiriță, head of the National Energy Regulatory Authority (ANRE), quoted by The Commission calls, according to the letter, for the rules on the electricity market to be brought in line with EU law as soon as possible.

The Commission says it understands the difficulties of implementing a reform, given the coronavirus pandemic, but ANRE needs to ensure that its measures support the transition to a fully liberalized market.

The European Commission also says that in the event of tariff increases, the protection of household consumers must be ensured by means other than state intervention in setting electricity prices. Thus, support should be used for energy-poor and vulnerable customers. Price regulation is a measure that has significant negative consequences. Implementing a mechanism to protect vulnerable consumers by the end of the liberalization process is crucial, the European Commission added.


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