(28 November 2018) In a failed liberalised EU electricity market regulated prices are still needed to protect domestic households.
The Electricity Market Directive is currently in a crucial legislative phase. European legislators are deciding whether to continue to allow Member States to regulate electricity prices or to phase out regulation completely. EPSU argues that Member States should continue to be allowed to regulate electricity prices.
The removal of price regulation is part of energy market liberalisation policies which the Commission has been pursuing over the past 20 years. The ultimate aim is to create a Single Energy Market. The argument is that a free and competitive market makes electricity more affordable and more environmentally sustainable.
This paper exposes the fallacies of liberalisation, showing how it has failed to deliver on its promises. On the contrary, over the past two decades, electricity bills and energy poverty have been rising across the EU. Investments in clean energy are below the levels required for the necessary transition to a decarbonised economy.
EPSU proposes a different model for the European Union, based on the public service principles of universality, access, equality, solidarity, affordability and cooperation. The production, transmission and distribution of electricity are a public service. We need a model based on public ownership and energy democracy in order to deliver safe, reliable, affordable and sustainable electricity for all citizens.