Czech Business Today

In a letter dated 14 March 2016 the Slovak Presidency of the EU Council asked the European Economic and Social Committee to draw up an opinion on the social dimension of the new electricity market design as part of a process of social and economic development.

It was requested that the factors that influence the electricity market be analysed more broadly and the influence that they have on energy price change in the EU should be assessed, in order to ensure that this change is long-lasting not only from an environmental point of view (protecting the climate), but also from an economic and social point of view, and particularly with regard to the security and availability of electricity supplies. The Slovak Presidency notes in its request that the new electricity market design brings opportunities for consumers and offers a more proactive way for them to interact with the market. Nevertheless, possible threats to socially vulnerable consumers must also be taken into account, alongside the anticipated impact of the increased electricity prices on the competitiveness of EU industry.

Reporter and his expert had prepared a document, based on SWOT analyses of the expected new electricity market design and had identified the long term transforming process of the new electricity market design as a possible risk of an impact on vulnerable consumers. Some members of the Study group expressed their reservation to the opinion proposal prepared by rapporteur and noticed, that EESC Opinion had to be more optimistic and oriented more to a new active role of consumers at a new electricity market.

Section TEN adopted the amendment of the document submitted by some members of the study group, which radically reduced analytical part of opinion and fundamentally changed meaning of the document. It was a reason, why reporter and group of EESC members submitted to the Plenary EESC the Counter opinion with following conclusions:

1. The EESC expects that the new electricity market design proposed by the European Commission as part of the autumn/winter energy package will lead to the full integration of renewable sources in the common electrical energy market, which is an important tool for fulfilling the EU’s commitments with regard to protecting the climate.
2. This proposal must aim to guarantee the long-term reliability and security of electricity supplies, leading to the removal of existing market distortions as well as introducing electricity prices that ensure the competitiveness of the European economy and will also be stable and accessible for low-income groups.
3. The EESC is convinced that the new electricity market design in its final form will reduce or eliminate the risks of a potentially negative impact on energy poverty.
4. The EESC considers that the process of transforming the electricity market from its current form into a new market design will potentially have an impact upon vulnerable groups of energy consumers, in particular the citizens.
5. The EESC Plenary meeting adopted on the 19th of October 2016 the Opinion in wording of Section TEN amendment. The Counter opinion has been supported by significant minority of 92 members (21 absence, 154 against) and has been enclosed as supplement to the adopted Opinion TEN 598.

Vladimír Novotný
EESC Member – Group I, EESC TEN/598 Opinion Reporter