On 28.09.22, Tagesspiegel Background reported on the new EPICO study entitled "What to cap? Emergency Interventions in the European Electricity and Gas Market." and presented our recommendations for action in the European electricity and gas market.
On the one hand, payments should be made to electricity producers, as an incentive, depending on day-ahead prices on the electricity market. On the other hand, this cap should only apply to new contracts in order to simplify its introduction. In addition, adopted instruments for electricity conservation should focus on the hours when gas-fired power plants frequently generate electricity.
The EU gas market and price development should be regulated by a price cap. Accordingly, all market participants would be able to purchase gas at a defined maximum price via the transmission system operators (TSOs). If there is not enough gas even at this maximum price, the TSOs would restrict supply. This allows us to provide clarity on the price development in case of supply interruptions.
You can download the policy report here.
Read the article (in German) in the Tagesspiegel Background or download it here.