EU Electricity Market

A new compromise proposal is under discussion for the EU internal market on electricity. In this proposal, environmental concerns and obligations to buy electricity based on renewable energy are part of the utilities' public service obligations. It is up to each country to decide how much renewable energy it wants. In addition to the renewable energy obligations, the directive will allow for free access of electricity across borders from utility to utility based on cheapest production costs.

The proposal still has a number of unsolved questions, especially regarding the "single buyer" concept, where one utility can be the buyer of electricity from all independent producers. The proposal will be discussed by the EU energy ministers on December 14. This meeting will, at best, lead to a common agreement that could result in a principal decision on a directive next summer.