MIL-OSI Europe: Written question – Decoupling electricity prices from gas prices – E-000465/2025

Source: European Parliament

Question for written answer  E-000465/2025
to the Commission
Rule 144
Dan-Ştefan Motreanu (PPE)

Despite significant progress in reducing dependence on natural gas and scaling up investments in clean energy, the EU’s electricity market rules continue to tie renewable and nuclear energy prices to volatile fossil fuel costs. As a result, consumers are unable to fully benefit from the lower costs of renewable energy.

At the height of the 2022 energy crisis, natural gas set electricity prices 63 % of the time, despite accounting for only 20 % of the EU’s electricity mix. This structural issue means that fluctuations in fossil fuel prices continue to disproportionately affect electricity costs across the market.

Long-term contracting mechanisms, such as power purchase agreements and contracts for difference, could help mitigate this dependence by stabilising prices and shielding consumers from fossil fuel volatility. However, these mechanisms remain underdeveloped in Europe, limiting the economic benefits of expanding renewable energy capacity.

What concrete steps does the Commission intend to take to accelerate the decoupling of electricity prices from gas prices and ensure a fairer, more stable pricing system for consumers?

Submitted: 3.2.2025

Last updated: 17 February 2025

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