Energie-Nederland, together with the Netherlands Sustainable Energy Association (NVDE), Holland Solar, and the Netherlands Wind Energy Association (NWEA), submitted a response to a consultation by the European Commission on the review of the electricity market. In it, these organizations identified a number of important issues:
Consumers best served by expansion of sustainability and proper market forces
- The energy crisis can only be tackled by rapidly reducing dependence on Russian natural gas. This is why it is important that sustainable electricity generation is expanded further, that there is continued commitment to energy savings, and that proper agreements with several gas-exporting countries are in place so that we have enough gas supplied in Europe.
- Consumers should continue to have freedom of choice. Close supervision by Authority for Consumers and Markets (ACM) is important to safeguard that suppliers hedge their market risks properly.
No stasis in crisis action, now is the time for careful policy development to make energy transition successful.
- Pricing in the wholesale market is working correctly and is giving off the right signals. We oppose ill-considered market intervention and the inframarginal tax should not become a structural component of the market design. This tax actually limits investments in renewable energy, while these are so very necessary for the energy and climate transition.
- No measure proposed in the consultation is aimed at encouraging investments needed to make the energy system completely carbon free, including adjustable production for – among other things – security of supply.
- The energy transition is leading to extreme investment risks. However, market participants need long-term certainty, and the government must provide this. The EU should offer member states a regulatory framework for this purpose.