MEPs debate and take a final vote on the reform of the EU electricity market to protect consumers from sudden price shocks and on new rules to facilitate the uptake of renewable and low-carbon gases, including hydrogen, on the EU’s gas market. Opening statements by Jerzy BUZEK (EPP, PL), Jens GEIER (S&D, DE), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteurs, Maria GRAPINI (S&D, RO) on behalf of IMCO Committee, Didier REYNDERS, European Commissioner for Justice. This transcription is a result of an automatic process. Please check against delivery.

Brussels

statement

debate

plenary session

energy efficiency (T)

GRAPINI, Maria (S&D, RO)

GEIER, Jens (S&D, DE)

BUZEK, Jerzy (EPP, PL)

energy union (T)

consumers' protection (T)

REYNDERS, Didier (BE, EC)

GONZÁLEZ CASARES, Nicolás (S&D, ES)

Reform of the energy and electricity markets: opening statements by Jerzy BUZEK (EPP, PL), Jens GEIER (S&D, DE), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteurs, Maria GRAPINI (S&D, RO) IMCO Committee and Didier REYNDERS, EU Commissioner for Justice

SOUDBITE (Polish), Jerzy BUZEK (EPP, PL), Rapporteur, Thank you, President, Commissioner. It's a very special day, I think, after Paris agreement 2015, and then our package to three times 20. Finally, we are taking yet another step towards a new energy transition. We want to have only two energy carriers going forward. First of all, electricity from renewables and nuclear and hydrogen. As of 2019, basically, this is our new European Green Deal. This session, will be devoted to conclude work on two very important legislative acts. Obviously, it takes time. We know it has to be just socially and rational in terms of costs.

SOUDBITE (Polish), Jerzy BUZEK (EPP, PL), Rapporteur, So these are our main guidelines. Yesterday the agreement on methane, was approved. Originally, we were worried that in my home Silesia mines would have to be closed. But, finally we managed to save the situation, but at the same time will be able to expect some real steps taken by mines to reduce methane and then for electricity, exactly the same situation. The vote is scheduled for today and thanks to our amendments. We have new rational proposals. For instance, the so-called infra-marginal installations will allow us to go forward with renewables. And then by 2028, we will have still the derogation for the so-called power markets for Poland, for instance, but also other countries.

SOUDBITE (Polish), Jerzy BUZEK (EPP, PL), Rapporteur, It's very important to know that we will have power going through thanks to electricity. So the upcoming two years will really have to be able to use that because the future will be green, the future will be definitely renewable. And then, hydrogen. And I know that the vote is scheduled for today as well. I've been working on it for the past two years. It's the first such comprehensive work on hydrogen in the history of our work. The main points in this package look as forward. When it comes to, separation of ownership, like we've had for gas and electricity in past.

SOUDBITE (Polish), Jerzy BUZEK (EPP, PL), Rapporteur, So we have a transit and distribution separately. And then subsidies, cross subsidies and then, into, periodic allocation of costs. What does it actually mean? The cost of investment and, and the cost of actually using the investments in hydrogen should be as low as possible. And then biomethane, we've managed to go down with tariffs. Also, when we access, the grid those costs will go down as well. And last but not least, support for mining regions in line with just transition will be able to do more and invest in hydrogen.

SOUDBITE (Polish), Jerzy BUZEK (EPP, PL), Rapporteur, Joint purchases when it comes to gas. This is something we've been waiting in the European Parliament for for years. Obviously Russia is excluded, but once we aggregate our needs, we will be be able to get the product much cheaper and we'll be able to include, hydrogen in those joint purchases going forward. And then last but not least, we'll be able, to, do more when it comes to ban on natural gas imported from Russia. Also new decisions in this regard in case of some geopolitical threats. It's a first basically.

SOUDBITE (Polish), Jerzy BUZEK (EPP, PL), Rapporteur, So I would conclude saying that we definitely going forward when it comes to protection of our climate, when it comes to the protection of dignified life. Guaranteed for our citizen. Very decisive step, but very rational.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, Thank you President. Commissioner, ladies and gentlemen, I think it's an appropriate thing to do at the start of my speech to thank Mr. Buzek for the fantastic work he's done on this. He was the rapporteur for the gas market regulation, but shadow as well on the gas directive. And I don't think we could have worked any better than we actually did. I'd like to pick up on what he mentioned and start with me saying it's important that we've reached this regulation.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, It is of central importance that methane emissions around the world are reduced. Methane is more potent as a climate killer than CO2. That's important for the Social Democrats as well, and for the trade unions to make sure that what we do doesn't scare people in taking this step. And I think this is important for somebody who comes from the work, a bit of North Rhine-Westphalia and looking at Silesia as a mining, having its phase out plans and jobs not being lost yet at the same time reducing methane emissions.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, Electricity markets are important and it is important that we ensure competitiveness of our energy intensive industries. We've seen some price shocks through Covid and the Russian war of aggression, and we need to look at how this works. I need to make it clear that I would have preferred to have seen a regulation. That would have ensured a price for electricity at the European level, rather than leaving it up to the the member States to turn to the Commission and look for subsidy regulations and that the European side could have made this something they could have facilitated and this would have helped transition in the industry.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, But moving on to hydrogen. I'm very pleased that we managed to look at energy intensive industries, which are very difficult to decarbonise chemicals, for example, steel, for example, and we put the focus on them in terms of the transition and within the context as far as is possible try and make sure that these, branches of industry are the ones that can decarbonise as quick as possible. We put these points at the start. In the network plans, we arrange them so that these could be this could be successful.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, My proposal for the future is that if later on we do look at hydrogen auctions, that we have a basket that is kept aside for the, offers for, those industries that is specifically set aside for them. It's important to get rid of the obstacles to investment. I have to say, Commissioner. You've dealt some things with some things as if this is unexplored territories. If we didn't have pipelines, if we didn't have transmission networks already in place. And the proposal from the commission was as if there were no tools to guarantee hydrogen, because the opposite is indeed the case.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, So we've tried to work through the unbundling rules and worked on the lines that we've learnt from own gas. So we have network planning that has been included in this regulation, which at the level of the municipality, you can have sector links set up where we can see where the sources of energy that can be exploited, and this will contribute to making sure that the demand for energy in fossil fuel state to be reduced and make sure that networks can kick in when the hydrogen, market is there.

SOUNDBITE (German), Jens GEIER (S&D, DE), Rapporteur, Finally, what we need from the commission is a delegated legal act on hydrogen, which will allow us to have a reliable access to hydrogen. But the objective of green hydrogen from renewable resources shouldn't be lost sight of either. Thank you.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, Thank you very much, president. First of all, I'd like to thank all the shadow rapporteurs. That worked hand-in-hand with me, and Mrs. Garcia Carvajal, among others, who's now the energy minister in Portugal and isn't here in the summer of 2021, with electricity prices shooting through the roof, some members of the socialist group said that the electricity market design was flawed. And then there, of course, was the whole issue of, gas blackmail. But we didn't want to play this. I remember Tereza Ribeiro raised her voice and put forward, pioneering measures that were very efficient, but the commission didn't see this coming.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, Then we had the Russian invasion of Ukraine and prices shot through the roof. And this, of course, triggered inflation. So citizens were emptying their pockets, but at the same time, others were filling their pockets at full speed. And that's what made us. Think about this. And that is that has brought us to the achievement of the parliament and especially the socialist group. It is an achievement because many thought it wasn't necessary to overhaul the market. Many didn't think that the European Parliament could move so speedily, but we did so.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, We were even quicker than the Council. We managed to stand united and to quickly negotiate a reform that is already bearing fruit in the short term. But the benefits in the medium term and long term will even be more impressive. More consumer protection, better rights, contained prices for citizens and companies. So we have this very fast energy transition as a backdrop. And not only do we have to tackle the climate emergency, we also have to grapple with the fact that energy is being used as a weapon of war.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, And for all these reasons, we realised that this reform was urgent. We have a very volatile situation. So we have to move forward. Now we have, this decoupling when it comes to the short term, to make sure that companies and consumers can make the most of reasonable prices, especially when it comes to forward prices. Then we want to promote storage, include renewable energy sources, and make sure demand plays a more important role, while so enshrining rights such as energy saving and being able to sell the own the energy that you produce, which will help citizens.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, We also want the European Commission to act before June 2026 and come up with a report that will look at forward prices and any problems with marginal prices as well, and to see whether we can overhaul the reform, we have to make sure that the market knows that there is predictability and that we can act quickly if there are new crises. As a socialist, I would like to say that we want to protect against the injustices that were taking place because there were unilateral contract changes and even people losing power being disconnected. And that is why, now vulnerable consumers cannot be disconnected.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, So what is sensible, what is humane? And, if we want to show solidarity, we have to act if there are problems in the market. It's also about climate change. We have to, make sure we have more electricity, less fossil fuels, but more affordable renewable energy sources. Consumers need this predictability to be able to move forward with electrification. We need more electric cars and less CO2 emissions.

SOUDBITE (Spanish), Nicolás GONZÁLEZ CASARES (S&D, ES), Rapporteur, So this is a reform for the present and for the future. And this reform would have not been possible without the whole negotiating team of the European Parliament behind this. And thanks to the Council, under the Spanish presidency, we managed to wrap this deal. And I'd like to thank all those who played a very important role even those who aren't here today. We are on the right track, and the reform is already bearing fruit and citizens are benefiting all over Europe. Thank you.

SOUNDBITE (Romanian), Maria GRAPINI (S&D, RO) on behalf of IMCO Committee, Chair, Commissioner, Colleagues. I think it is amazing for us to finish our mandate with this package. This is a very important one. As the shadow rapporteur for the Imco Committee, of course, we expected a lot from this. We wanted to protect consumers. And on the other hand, we wanted to look after SMEs, of course, because the pressure of utility prices could take them out of the market. And I would like to thank the entire team that worked on this package, because, as Mr. Geier said, we improved the commission's proposal.

paragraph-22 I think this is an acceptable package. It's not ideal, of course, we can stillwork on the matter further on. And I think it's important that during the cold season, we managed to get protection for consumers. It wasn't easy. But we managed, and I think that now we have to be careful with implementation because this is a shared responsibility with member states. And it's important to see how each member state will actually implement this very important package to regulate the energy market and the gas market. Thank you.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Thank you president. Honourable members. I am pleased to be here today for this very important occasion to endorse the electricity market design reform and the hydrogen and decarbonised gas markets package. I'm replacing my colleague Kadri Simson, who unfortunately could not be here today. These legislative initiatives are key for the decarbonisation of all energy system, for improving European energy security and for boosting the competitiveness of the EU economy.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, This is achieved by bringing stability and predictability to the cost of energy and for investments. The EU integrated and interconnected energy markets is our biggest asset and its proper functioning is crucial. That is exactly what these legislative initiatives are about. Well-functioning energy markets are key to deliver the EU Green Deal and EU Recovery plan objectives. The value that the markets create contributes directly to the EU competitiveness.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, I convey my warmest thanks to the rapporteurs, Mr. Buzek, Mr. Geier, and Mr. Gonzalez Casares, and to the team of shadow rapporteurs. For all your efforts and their remarkable work in bringing these important files to a successful and ambitious conclusion. The Parliament played a key role in delivering this file. First and foremost, these legislative initiatives will accelerate the deployment and integration of renewable energy sources and create a more effective enabling framework.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The Electricity Market design reform will promote power purchase agreements and contracts for difference. These instruments will ensure that the low and predictable cost of renewables are better reflected in consumer bills, and thereby contribute to the affordability of prices. At the same time, these instruments will enhance revenue certainty for investors and thereby incentivise investments in renewables and low carbon solutions that are needed to boost the energy transition.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The hydrogen and gas package, with enhanced production and better integration in the gas network of renewable and low carbon gases, including hydrogen and biomethane. The new framework also creates legal certainty for much needed investments into the decarbonisation of the gas sector for hydrogen. The new regulatory framework is based on proven principles of energy regulation, which already apply to natural gas and electricity, notably third party access and unbundling of energy networks.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, The reinforced requirements for mandatory ten year, ten year network planning at national level will improve the efficiency of network development and frame the development of distribution network. The balanced compromise reached by the co-legislators on the European Organisation of Hydrogen Network Operators will benefit this network planning and the setting of network rules.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, These legislative acts will also make our energy system more resilient and competitive with the electricity market design. I wish from the energy bills of European consumers and companies will be more independent from the short term market price of electricity that is still often determined by power production using expensive fossil technologies. The gas package will strengthen the solidarity mechanism between the member states to ensure security of supply, even in the most challenging circumstances.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, It would also, given the member states, an opportunity to restrict access to Russian gas in line with the report EU objectives. The gas package also foresees the establishment of a permanent and voluntary mechanism for demand aggregation and joint processing of natural gas. Building on the experience of aggregates EU.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, This mechanism will contribute to the further diversification away from Russian fossil fuels and this plays. A high level of cooperation among member states, in line with the objectives defined again in the report. In addition, the Gas and Hydrogen Regulation provides for a five year pilot mechanism for hydrogen market developments, which will help connect you of an ageing of takers to producers within the EU and globally.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, Finally, but equally important, the consumers are now better protected and empowered. Consumers will gain long awaited rights and protections in the gas markets. Bringing them up to date with their rights as electricity consumers. Thanks to the electricity market, design reform and now just sharing in diverse, our new electricity offers will become a reality, helping consumers to better control their energy bills.

SOUNDBITE (English), Didier REYNDERS, European Commissioner for Justice, I'm looking forward to the plenary vote for these legislative files. Swift transposition and implementation of the new rules will be key to ensure that European citizens and companies can reap the benefits of a well-functioning internal energy market. The Commission will be a strong ally to Member States, stakeholders, people and businesses by fostering best practices for a smoother and more sustainable energy market for all. Thank you.