ACER publishes its Final Assessment of the EU Wholesale Electricity Market Design
What is it about?
The EU Agency for the Cooperation of Energy Regulators (ACER) has published today its Final Assessment of the EU Wholesale Electricity Market Design.
What’s in the report?
This ACER Final Report presents an in-depth analysis of:
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energy price levels and drivers
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current wholesale electricity market design
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ways to future-proof the wholesale electricity market
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extreme price shocks and considerations on temporary, targeted measures
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the impact on retail markets and how to protect consumers.
ACER concludes with a set of 13 measures for policy makers’ consideration.
Key Findings
Overall, ACER finds that whilst the current electricity market design is worth keeping, some improvements will prove key for it to deliver on important challenges, including:
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Making short-term electricity markets work better everywhere
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Driving the energy transition through efficient long-term markets
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Increasing the flexibility of the electricity system
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Protecting consumers against excessive volatility whilst addressing inevitable trade-offs
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Tackling non-market barriers and political stumbling blocks
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Preparing for future high energy prices in ‘peace time’; being very prudent towards wholesale market intervention in ‘war time’.
ACER’s 13 measures for consideration by policy makers
ACER’s analysis has put forward a suite of 13 measures for policy makers to future proof the market design, for example to:
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shield those consumers that need protection the most from price volatility
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stimulate ‘market making’ to improve liquidity in the long-term markets
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speed up electricity market integration, implementing what is already agreed
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better integrate forward markets
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consider prudently the need for market interventions in situations of extreme duress and, if pursued, consider tackling the ‘root causes’.
Next steps
ACER published its Preliminary Assessment in November 2021. This Final Assessment fulfils the mandate given by the European Commission in October 2021.
ACER will present its Final Assessment at a public webinar on the 5th May.
