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The approach of letting the market do the job before resorting to state intervention means creating a level playing field for all market participants.

“Besides resulting in a better way of solving both our climate goals and giving the lowest and most competitive prices for consumers, it will also provide investors in the electricity market with the needed assurance to make long-term investments in the market”, Krišjānis Kariņš said.

A separate issue is the capacity mechanisms and strategic production reserves which are underused, and state subsidized electricity production capacity that can be brought to the market if necessary. The original proposal from the Commission to limit the emissions from power plants that provide a back-up capacity to 550 grams of CO2 per kilowatt hour, was carried - a measure that will facilitate the transformation to cleaner electricity production.

“Removing market barriers means more market players and more choice for the consumer. We should help everyone that can and is willing to participate in the market.”

The adopted Reports also deal with regional cooperation between electricity transmissions systems across borders to ensure system security and avoid blackouts, foresee the phase-out of regulated prices, and set up the EU Distribution System Operators (DSO) entity.