The European Commission is preparing a reform plan for the EU electricity market that, in March 2023, aims to set electricity prices independently of natural gas costs. This was outlined by Virginijus Sinkevičius, European Commissioner for the Environment and Oceans, during a session of the Lithuanian Parliament as reported by TASS.
Sinkevičius explained that the commission intends to submit proposals in March that would separate the electricity price from gas prices. He noted that the concrete details of the project are still under discussion, with consultations ongoing among EU member states and other stakeholders. He also indicated that some aspects of the plan will remain under wraps until consensus is reached.
Under the present framework, the price of natural gas plays a significant role in determining the price of electricity in the market.
In mid-September, interim proposals were put forward to address the energy crisis by limiting the revenues of energy producers, a move that could mobilize about €140 billion. Ursula von der Leyen pointed out that many Europeans require assistance to cover their energy bills. At the same time, certain producers generate electricity at relatively low costs while earning substantial profits.
The reform is framed as part of a broader strategy to stabilize prices, shield consumers from volatile energy costs, and create a more predictable market environment across the bloc. Officials emphasize that while the objective is clear, the path to transformation will require careful alignment with member states, energy market operators, and consumer representatives to ensure affordability and reliability without compromising supply security.
Observers note that the proposed shift would not only affect pricing mechanisms but also how wholesale markets, cross-border trade, and investment in clean energy projects are coordinated within the union. Supporters argue that decoupling electricity from gas costs could reduce exposure to fossil fuel price swings and foster more durable electricity bills for households and businesses alike. Critics caution that transitional arrangements and safeguards will be essential to prevent unintended consequences during the rollout.
As the commission proceeds with discussions, the focus remains on achieving a balance between market efficiency, consumer protection, and the energy transition goals shared by all member states. The outcome of these efforts will influence investment signals, grid planning, and regional cooperation across Europe as the bloc works toward a more resilient and affordable energy system for the future.