EU countries want to protect consumers from escalating electricity prices: The planned reform of the European electricity market is intended to provide consumers and industry with cheaper prices and long-term contracts.

EU countries want to protect consumers from escalating electricity prices: The planned reform of the European electricity market is intended to provide consumers and industry with cheaper prices and long-term contracts.

According to a report by www.n-tv.de, EU countries have agreed to better protect consumers from escalating electricity prices. After months of negotiations, the energy ministers have agreed on a common position on proposals for reforming the European electricity market. This agreement opens the way for talks with the European Parliament to finalize the reform.

The aim of the project is to protect consumers from wildly fluctuating prices like during last year's energy crisis. In addition, consumers and industry should benefit from cheaper electricity production. It is also planned that private individuals will have the right to fixed-price contracts and contracts with dynamic prices.

A focus of the effort is on new long-term contracts between governments and power producers. In these contracts, the government is supposed to step in and make up the difference if the market price falls below an agreed price. If the price is higher, the surplus goes to the state. This is intended to create incentives for domestic production of clean electricity.

This reform of the European electricity market could have far-reaching effects on the market and the financial sector. Protecting against escalating electricity prices will reduce the risk for consumers, which could have a positive impact on their household costs. In addition, cheaper electricity production could lead to lower prices and relieve pressure on industrial companies.

The planned introduction of fixed-price contracts and contracts with dynamic prices opens up new opportunities for consumers to choose electricity contracts that better suit their individual needs.

Through long-term contracts and support for domestic production of clean electricity, the financial sector could prepare for new business opportunities. Investing in renewable energy and promoting energy independence could become more important.

Overall, the planned reform of the European electricity market shows the desire of EU countries to protect consumers while at the same time promoting sustainability and profitability in the energy sector.

Source: According to a report by www.n-tv.de