LUXEMBOURG (Reuters) – Energy ministers from European Union countries will try, at a meeting on Tuesday, to break an impasse between France and Germany over reform of the European energy market. energy.
The 27 EU countries want to adopt a common position on electricity market reform to make electricity bills more predictable for European consumers. The reform plans to direct electricity producers towards longer-term contracts with stable prices.
However, its adoption is hampered by a disagreement over the content of a single article, 19b. It specifies how state aid can be used to support energy projects.
Berlin, on the brink of recession, fears that France, with its vast nuclear fleet, will be able to offer fixed-price electricity contracts to its existing nuclear fleet and then spend the revenue generated by these contracts backed by the government to subsidize industries.
“This is about ensuring a level playing field in Europe. And these level playing field must not be compromised by special forms of energy markets,” said German Economy Minister Robert Habeck, adding that there was still work to be done to reach an agreement.
The other member states are divided. The countries of Central and Eastern Europe, which themselves have nuclear expansion ambitions, support France. Belgium, Denmark, Luxembourg, Austria and other countries support Germany.
To break the deadlock, Spain, which holds the EU presidency until the end of the year, will propose a compromise, consulted last week by Reuters. Only new power plants, not existing ones, could benefit from state-guaranteed fixed-price electricity contracts, known as contracts for difference (CfD).
“I hope to have a majority of 27,” said Spanish Minister of Ecological Transition Teresa Ribera, who will chair Tuesday’s negotiations.
The failure of this part of the reform would not prohibit France and other countries from offering electricity purchase contracts to existing power plants. On the other hand, it could make their use more difficult and subject them to approval by Brussels, in accordance with EU state aid rules.
(Reporting Julia Payne and Kate Abnett; with contributions from Markus Wacket; French version Gaëlle Sheehan, editing by Kate Entringer)
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