The European Economic and Social Committee calls for a review of the electricity market to ensure competitive prices and supply security

The European Economic and Social Committee (EESC) has released the Exploratory Opinion on “Competitiveness and Industry,” in which it analyzes the competitiveness of the industry in the face of the ecological transition process and, more importantly, the strategies and actions to be taken to “ensure a long-term future for European industry.”

While these opinions are not binding, they provide a clear and realistic view that should serve as a guide for policymakers and all those, like the FIE, who are committed to managing industry energy as an element of industrial competitiveness.

One particularly noteworthy aspect of the opinion is the analysis it conducts on the reasons why “in recent decades, various indicators have highlighted a deterioration in the Union’s industrial base”.  Factors contributing to this decline include overregulation, lack of investment, and energy prices.

Regarding energy prices, the opinion identifies structural reasons such as dependence on fossil fuels and “reasons that depend on internal decisions […] such as the formation of electricity prices.” According to the text, “the electricity market is heavily regulated and has been functioning correctly for about twenty years, but it has reacted poorly to recent tensions. For example, the electricity price internalizes the price of CO2 emission rights regardless of whether it is generated or not through CO2 emissions”.