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EU must take regionalisation of electricity markets a step further

The European Commission has proposed to set up Regional Operational Centers (ROCs), which is a welcome step in the further integration of the EU internal electricity market, writes Philip Baker of the Regulatory Assistance Project (RAP). However, according to Baker, the proposal does not go far enough: more regional coordination is needed if consumers are…

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A Pragmatic Proposal for Supplier Compensation

The European Commission has proposed that independent aggregators should not be required anymore to pay compensation to suppliers, as is the case in many EU member states today. According to Philip Baker this proposal should be supported, as it will improve the flexibility of the market and lead to lower prices for consumers. However, it…

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Supplier Compensation: European Commission and US FERC See Eye to Eye

Energy suppliers are lobbying against a proposal from the European Commission to remove barriers to demand response schemes, writes Philip Baker. According to Baker, the Commission should stick with its proposal. Demand response, he argues, will bring great savings to energy consumers. What is more, the Federal Energy Regulatory Commission (FERC) in the United States…

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Proposed Electricity Directive a Step in the Right Direction for Customers, Demand Response

Explicit demand response, where aggregators enable small commercial and domestic consumers to directly participate in the wholesale power market by flexing their demand, is a vital resource in the transition to a sustainable electricity system. However, barriers to the successful development of this vital resource exist in many Member States, including the need for aggregators…

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Delivering the Benefits of Customer Participation in the Energy Market

Europe’s new energy project promises to put a focus on consumer interests, yet what this new market would look like in practice is often poorly understood. As the European Commission ponders the design of a new and interconnected energy market for Europe, it needs to make sure this market benefits consumers, while not disadvantaging suppliers….

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If Europe Wants Integrated Markets, it Should Take the Leap to Regional Grids

Europe is progressing towards an integrated, interconnected pan-European electricity market. However, the governance and regulatory arrangements that the EU has established to support this process are inadequate to the task. They are more focused on preserving the sovereignty of national TSO and regulators than addressing the wider interests of the market. According to Baker, the…

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Brussels, Don’t Leave Customer Participation in the Electricity Market to the Incumbents!

Allowing customers to participate directly in electricity markets is crucial both to making those markets more efficient and to reducing the costs of integrating renewable energies. The Commission’s Energy Union Market Design Initiative currently under development represents a unique opportunity to facilitate this participation and ensure that all Europe’s citizens and businesses share in the…