Friday, October 7, 2022

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Rising gas and electricity prices: industry associations urge the EU to not put the wholesale market in danger

The European Federation of Energy Traders (EFET) has joined other industry associations represented in the Market European Stakeholders Committee (MESC) to respond to the rise in energy prices.

Together, they urged the EU Commission and national governments to ensure that any toolbox of measures to help vulnerable customers does not endanger the operation of the wholesale market.

EFET is aware that rising energy costs cause real challenges for small consumers and supports efforts to help the most vulnerable. In the case of independent retail suppliers as well as industrial and commercial consumers, continuing competition and liquidity in European energy markets will help them protect themselves from price volatility through hedging.

Markets are also vital in creating incentives for the investment and innovation needed to remove carbon from the European energy mix. As stressed in the joint MESC statement, competitive forces ensure efficient allocation of scarce resources and thereby contribute to the absorption of price shocks and progress towards carbon neutrality. This will remain the case throughout Europe, as long as governments refrain from interference in the operation of energy and carbon markets and adhere to forthcoming EU Commission guidance.

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