Energy Market Reform

Energy Market Update - On 27 June 2024, the EU Directive no. 2024/1711 and the EU Regulation no. 2024/1747, regarding the improvement of the Union’s electricity market design, have been published in the EU Official Journal.

The two measures provide for: a generation support schemes based on two-way contracts for difference (CdF) and an EU market for PPAs, limits on CO2 emissions, RES auctions at community level, the possibility for the Council to declare a state of crisis in the event of exceptionally high prices and energy sharing systems to ensure consumer protection.

The Regulation will come into force on 16 July, while Member States shall transpose on their laws and regulations the Directive by 17 January 2025.

The Directive no. 2024/1711 provides for several amendments to Directive 2019/944 on common rules for internal market of electricity, introducing some important rights such as:

i) Right of free choice of supplier (Art. 4) – All customers are free to purchase electricity from suppliers of their choice; to have more than one electricity supply contract or energy sharing agreement at the same time; to have more than one metering and billing point covered by the single connection point for their premises.

ii)???Right to energy sharing (Art. 15 a) - Specifically:

• all households, small and medium-sized enterprises, public bodies (and categories of final customers decided by Member States) have the right to participate in energy sharing as active customers in a non-discriminatory manner, within the same bidding zone or a more limited geographical area;
• active customers are entitled to share renewable energy between themselves based on private agreements or through a legal entity.
• active customers may appoint a third party as an energy sharing organizer to provide support for managing and balancing behind-the-meter flexible loads, distributed renewable energy generation and storage facilities that are part of the relevant energy sharing arrangement. The energy sharing organizer or another third party may own or manage a storage or renewable energy generation facility of up to 6 MW, without being considered to be an active customer, except where it is one of the active customers participating in the energy sharing project.

Member States shall bring into force the laws and regulations (and administrative provisions) necessary to comply with such rights by 17 July 2026.

EU Directive no. 2024/1711 - https://eur-lex.europa.eu/eli/dir/2024/1711/oj

EU Regulation no. 2024/1747 https://eur-lex.europa.eu/eli/reg/2024/1747/oj

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