Speculation over another shake-up of Europe’s electricity market is rattling the power sector just months after reforms were agreed.
In a letter to EU heads of state and government, the Eurelectric Presidency has urged political leaders to stop reopening the marginal pricing debate, warning that regulatory churn risks undermining the investment needed to deliver affordable, secure and decarbonised power.
The intervention follows comments from European Commission president Ursula von der Leyen that “different options” on electricity market design will be brought to the European Council later this month.
For utilities and investors, that signals fresh uncertainty at a time when clarity matters most.
Europe’s power system is staring down an enormous build-out. More than €5.6 trillion (£4.8 trillion) of investment is expected by 2050 to expand clean generation, reinforce grids and support electrification across industry transport and homes.
Eurelectric argues that reopening a reform process only recently concluded would slow decisions on capital just as delivery needs to accelerate.
The group defends marginal pricing as the backbone of the wholesale market, saying it remains the most efficient way to dispatch electricity, provide transparent price signals and reward investment in flexibility and low-carbon generation.
Undermining that framework, it warns, would ultimately push costs higher rather than lower.
Instead, the Presidency points to existing options that could ease short-term price pressures without distorting the market, including measures already identified alongside energy-intensive industries such as steel chemicals and aluminium following the Antwerp dialogue.
The letter also underlines the importance of maintaining the integrity of the EU Emissions Trading System, arguing it remains central to driving cost-efficient emissions cuts across the economy.
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