The EU is planning a comprehensive reform of the electricity market: here are the expected changes

She claimed that Western countries should have listened to the Baltic countries and Poland, which warned about the threat posed by Russian President Vladimir Putin.

“One lesson of this war is that we should have listened to those who know V. Putin. We should have listened to the voices inside our Union – in Poland, the Baltic, Central and Eastern European countries,” she said in her annual statement on Wednesday.

According to the chairwoman of the EC, the representatives of the Baltic countries have been saying for a long time that V. Putin will not stop and have taken actions in consideration of this.

“Our friends in the Baltic countries have worked hard to end their dependence on Russia. They have invested in renewable energy, liquefied natural gas terminals and connecting lines,” she said.

“It cost a lot, but dependence on Russian fossil fuels costs much more. We have to get rid of this dependence throughout Europe,” U. von der Leyen added.

The President of the EC stated that the reform of the electricity market in the EU is necessary in order to reduce the influence of gas on electricity prices. Natural gas is used to heat industry, homes and offices, and to generate electricity.

One of the proposed measures provides for the establishment of upper profit limits for electricity producers – this measure is expected to collect 140 billion. euros, they will be used to mitigate the impact of the energy crisis on consumers, said the head of the European Commission in her annual report on the situation in the Community.

Among the proposed measures are also the rationing of energy use, temporary state aid and the decoupling of gas and energy prices.

Even before Russia’s invasion of Ukraine, many EU member states called for fundamental and structural reform of the bloc’s energy market, as, in their opinion, the influence of gas on wholesale electricity prices is disproportionate.

U. von der Leyen also proposed legislation aimed at ensuring the safety of key raw materials.

“Today, China controls the global refining industry. Almost 90 percent of rare earth metals and 60 percent. lithium is processed in China,” she said.

The proposed law would establish “strategic projects throughout the supply chain” and “create strategic reserves where supply is at risk,” said the head of the European Commission.

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