| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | (L) 2024/1106 |
| Publication Date | 17/04/2024 |
| Content Type | Legislation, Policy-making |
Summary:Regulation (EU) 2024/1106 - adopted by the co-legislators on 11 April 2024 - introducing amendments to Regulation (EU) No 1227/2011 and Regulation (EU) 2019/942 to improve the European Union's (EU) protection against market manipulation in the wholesale energy market. This is a text with EEA relevance. Further information:Regulation (EU) No 1227/2011 - also known as the Wholesale Energy Market Integrity and Transparency (REMIT) Regulation - established a framework for monitoring wholesale energy markets. Regulation (EU) 2019/942 updated the role of the EU Agency for the Cooperation of Energy Regulators (ACER). This Act addresses concerns over exposure to volatile short-term prices, driven by high prices of fossil fuels. It seeks to complement the short-term markets with a greater role for longer-term instruments, through Power Purchase Agreements (PPAs) and more prudential obligations for energy suppliers. It aims to clarify access to longer term contracts for developers. It also introduces measures to improve the way variable renewable and low carbon energies are integrated into the short-term market. The draft law was adopted by the European Commission on 14 March 2023 as part of a legislative package seeking to reform the EU's electricity market design and following up an announcement at the State of the European Union (SOTEU) address in 2022. Energy prices had increased significantly by then. They were felt by households, industry and businesses across the EU, and national governments tried to address them. At an EU-level, a Toolbox was provided to tackle high prices, in particular for the most vulnerable consumers, as well as the REPowerEU action plan comprising further measures and funding to boost energy efficiency and renewable energy. This was followed by the creation of a temporary State Aid regime to allow certain measures to soften the impact of high prices, among other measures. All together, the measures helped Member States to deal with the immediate impact of the energy crisis. However, the crisis also highlighted the lack of resilience to energy price spikes. The Regulation seeks to address those challenges. The Council of the European Union adopted its general approach to the proposed text on 19 June. The European Parliament's relevant committee adopted a negotiating position on the proposal on 7 September. An informal agreement between the co-legislators on a compromise text for this file was reached on 16 November. This was formally endorsed by Parliament on 29 February 2024 and by the Council on 18 March. The Act was signed by the co-legislators on 11 April 2024 and published in the Official Journal on 17 April 2024. |
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| Source Link | Link to Main Source http://data.europa.eu/eli/reg/2024/1106/oj |
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| Subject Categories | Energy |
| Subject Tags | Energy Markets |
| Keywords | Electricity Grids | Network |
| International Organisations | European Union [EU] |
