Europe Electricity Pricing: Lost in translation?

As part of the Ifri Energy Program, a seminar with Michel Cruciani, chargé de mission, Centre de Géopolitique et des Matières Premières (CGEPM), Université ParisIX-Dauphine, Matti Supponen, Policy Co-ordinator - Policy and project Officer, DG Energie, Unit B/2 Electricity and Gas, European Commission and Nicolas Pierreux, Market Development Manager, Belpex.Chaired by: Maïté Jaureguy-Naudin, Research Fellow, Director of the Center for Energy at Ifri and Jacques Lesourne, Chairman of the Scientific of the Center for Energy at Ifri.

EU climate and energy policy is based on the now famous three pillars: security of supply, competition and sustainability. Through liberalization of the electricity sector, we sought efficiency gains by increasing competition in the market. Yet electricity prices have been rising ever since, and prices differences did not decrease. Consumers want to know why but they may not like the answer.
Other externalities such as climate change objectives, which have been translated in CO2 quotas and renewable targets, have raised generation costs. Commission directives have been translated into divergent national policies, challenging the creation of a common market for electricity. At a time where EU member states insist on national energy priorities, translate the costs of national generation mixes into local prices, preserve their own regulatory frameworks and effectively turn a blind eye to cross border effects, is a single electricity market really taking shape? Do consumer"s prices yet reflect sustainable generation costs and send a sustainable signal to investors? Are EU directives consistent and strong enough to harmonize pricing regulations? There is a clear imperative to build an efficient single electricity market - but it is not happening fast enough. This conference will explore this pressing issue. To introduce the debate, Michel Cruciani (CGEMP) will present his forthcoming Ifri study on electricity prices for households in western Europe.