CEER commits to support European Commission’s Clean Industrial Deal and Affordable Energy Action Plan
The Council of European Energy Regulators (CEER) acknowledges the recent communications from the European Commission (EC), including the Clean Industrial Deal and the Affordable Energy Action Plan. These documents outline an ambitious set of proposals aimed at addressing critical challenges in the energy sector for the next years.
CEER would like to highlight the following key elements:
- On Network Charges:
The EC’s initiative to provide a design of tariff methodology for network charges to incentivise flexibility and investment in electrification is a priority and a core competence of independent National Regulatory Authorities (NRAs). We believe that a forward-looking and predictable approach to tariff and methodology is essential to support efficient investment as well as ensuring affordability for consumers. For NRAs, the tariff methodology should be based on the regulatory principle of cost-reflectivity of investments. We look forward to engaging with the Commission to address these challenges and make sure we leverage NRAs core expertise on such issues.
- On Infrastructure Development and Financing:
The focus on accelerating grid expansion is critical to achieving the European Union’s (EU) energy transition goals. We emphasise the need for a swift transposition of the new provisions, including streamlined permitting processes, improved financing mechanisms, and an approach to network tariff methodology that provides efficient signals to incentivise investments in a modernised, interconnected and digitalised grid as well as flexibility. Regulators are committed to working with stakeholders to ensure that infrastructure investments are efficient, cost-effective, and aligned with the needs of a decarbonised European energy system. We also emphasise the importance of strengthening the competences of NRAs to ensure transparent and efficient infrastructure planning, in line with the needs of a decarbonised energy system.
- On Consumer Protection:
We support all efforts to enhance consumer protection and improve retail market competition. Greater competition in the retail market is essential to delivering affordable and innovative energy solutions for consumers. Therefore, we urge the EC to address the impact of, for example, hedging requirements and collateral obligations, which disproportionately affect smaller suppliers and ultimately limit consumer choice. We also support efforts to review the impact of taxation and policy costs on consumer bills, advocating for clearer price signals to encourage energy efficiency and flexibility.
In addition to these priorities, CEER is prepared to contribute to other areas outlined in the EC’s communications, including:
- The establishment of a Gas Market Task Force to support the implementation of gas market reforms.
- Assessing the need for an alignment of REMIT (Regulation on Energy Market Integrity and Transparency) and financial market regulations to ensure a coherent and effective framework for energy trading bearing in mind its specificities.
- Engagement with the Energy Union Task Force to contribute to governance discussions and ensure alignment with regulatory priorities.
We commend the EC for its ambitious agenda and reaffirm our commitment to collaborating with EU institutions, and other stakeholders to deliver a resilient, competitive, and sustainable energy market for all Europeans.
CEER reiterates that it is of paramount importance to transpose and implement the 2024 Electricity Market Design and the Gas/Hydrogen Decarbonisation Packages swiftly to reap the benefits of an integrated internal energy market.
