EC to discuss the functioning of electricity market in southeastern Europe

Romanian Minister of Energy Sebastian Burduja announced that the European Commission accepted that, at the next Council of Ministers scheduled for 15 October, the joint request of Romania, Bulgaria, and Greece regarding the faulty functioning of the electricity market in southeastern Europe be debated.

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Minister Burduja stressed that if SEE countries contribute to the decarbonization process and the green transition, then they? request to have the same rights – meaning access to electricity at a competitive price, comparable to the price other countries pay. It is not normal for SEE to pay much higher prices for energy than Western Europe, as has happened in recent months.

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He argued that central European countries impede the free functioning of the day-ahead market, containing the pressure from Ukraine and Moldova to a handful of countries in the Eastern part of the continent. He pointed to Austria and Slovakia as the countries that do not allow for the free flow of cheaper electricity from the western part of the continent to the eastern part.?

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The additional demand for energy from Moldova and Ukraine puts additional pressure on prices in SEE region.

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Last week, Greek, Romanian and Bulgarian authorities sent a letter to the European Commission, urging for action to address rising prices in the wholesale electricity market. In the letter, they highlight that price fluctuations in southeastern Europe have placed significant strain on their economies, jeopardizing energy security and market stability in the region. The three countries identified a lack of interconnection capacity, which hinders energy flow to southeastern Europe during critical periods, as a major contributor to the issue. Additionally, they pointed out that the limited integration of regional electricity markets with the broader EU system has resulted in significant price differences, often ranging from 50 to 100 euros/MWh.

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