Much has had to change the landscape for Brussels to be willing to extend intervention in the electricity market to the entire European Union Until now known as the “Iberian exception” (because it only applies in Spain and Portugal), which consists of bump the price of gas which is used to generate electricity. Indeed, although barely five months have passed, the current situation has little to do with the reluctance encountered by the Prime Minister, Pedro Sánchez, when he went to defend the measure before the European Council last March. In the first place, because after six months of war in ukrainethe conflict has settled into a deadlock that gives little hope that Vladimir Putin reduce the threat of cutting gas to EU countries, with the consequent increase in energy prices, and winter is getting closer. Secondly, because with the new system in force in Spain since June 15, the first conclusions can already be drawn. And although it has not managed to stop the unstoppable rise in electricity prices, Spanish consumers face much lower increases in their electricity bill to which other European citizens must pay. These are the reasons why the President of the European Commission, Ursula von der Leyen, announced last Monday an “emergency intervention” in the electricity market, of which few details have been given other than the idea of decoupling the price of gas and electricity. He also mentioned the will to have ready, at the beginning of 2023, a structural reform of the electricity market. The EU energy ministers are summoned to an extraordinary meeting on September 9 to address these issues.
It is important to emphasize the concept of “emergency” that von der Leyen mentioned. The marginalist system that has worked until now in the EU (with the exception of Spain and Portugal) was born with a very clear will: promote the implementation of renewable energies. For this reason, although these are cheaper than those generated from fossil fuels (in combined cycle plants that burn gas and in coal plants), the price paid for them is the same for all: the most expensive. It is an incentive for the production of clean energy, although it has had a enriching effect for electrics (which charge a high price for energy that is actually cheap). Let us remember that when this marginalist system was implemented two decades ago, renewable energies were in the minority and it was necessary to promote them. That goal remains valid today, and even more so, with the climate crisis as present as we are seeing this summer.
The “emergency” situation justifies intervening in the electricity market, it is not admissible that citizens receive bills at exorbitant prices at the same time that energy companies increase their profits. The costs of the war must be distributed among consumers, industry and the public treasury, and not only fall on the shoulders of the former. But at the same time, we must not go back in all that has been achieved in these 20 years: the energy transition continues to be the medium and long-term objective. Therefore, we must also attend to the second announcement made by the community president, the structural reform of the electricity market scheduled for next year. The model that comes out of this reform should provide the stability that is now lacking.