Debate: A truly interconnected Energy Single Market to keep bills down and companies competitive
Date: WEDNESDAY, 23 NOVEMBER 2022
Speaker: Mikuláš Bek
Language: EN

As many of you know, 20 years ago the European energy market was characterised by fragmentation and monopolistic national models. Energy import, production, storage, distribution and trade was often in one hand. Monopolies charged their prices individually, and sometimes they were unjustifiably high, with direct repercussions on the whole economy.  Progressively, the EU changed its picture by unbundling monopolies and moving towards market integration. Three legislation packages were introduced, followed more recently by the Clean Energy Package. Greater integration of the gas and electricity markets produced important benefits in terms of prices and increased security of supply.  This year, another factor added complexity to the challenges of setting up an integrated market, respecting the environmental commitments of the Union: Russia’s war of aggression against Ukraine and its dramatic impact on energy markets. The surge in energy prices jeopardised the EU’s economic development already at risk because of the COVID—19 pandemic, with severe repercussions for the most vulnerable components of our societies.  The EU and its Member States reacted to this new situation by seeking solutions to address the current crisis, while at the same time advancing the integration of our energy sectors in the long run. This has been a major objective for the Council – one that we share with the Commission and the European Parliament.  A platform for joint purchases has been set up to buy energy from EU trusted partners, and measures to contain energy demand and enhance energy efficiency in consumption were introduced. To act swiftly and effectively, the Czech Presidency has already convened three extraordinary Energy Councils in addition to the regular one in October.  Tomorrow, during the fourth extraordinary Energy Council, the Ministers should agree on legislation that will make the energy platform operational, strengthen solidarity among Member States in the field of energy, tame price volatility and speed up deployment of renewables. We are also planning to start discussing the most recent proposal on the market correction mechanism that has been delivered by the Commission on request from the October European Council.  So far, the EU has proved to be able to act swiftly and with a common political vision. However, much remains to be done. As we can read in the latest ACER report, national authorities need to fully transpose the Electricity Directive, defining proper national legal frameworks for new and small players.  We also need to act to harmonise the features of the capacity mechanisms and speed up the rollout of smart meters and, lastly, to design new measures for further energy policy integration. Let me recall the 2020 EU strategy for energy system integration to optimise and modernise the EU’s energy system as a whole. This strategy links the various energy sectors and carriers for electricity, heat, cold, gas, and solid and liquid fuels with each other and with the end—use sectors, reducing inefficiencies to achieve an optimal use of energy.  The crucial moment in this effort will be the proposal to reform the electricity market design announced by the Commission for the beginning of next year.  Let me conclude by saying that, in spite of the current crisis, the EU needs to keep a long—term vision for developing offshore renewable energy, hydrogen, carbon capture and storage, energy research and development. These are key areas to ensure the long—lasting prosperity and development of our societies and respect for the environment.  Thank you very much for your attention.