EU Takes Legal Action To Ensure Compliance With Renewable Energy And Electricity Market Rules

The European Commission has taken legal steps against several EU member states for not complying with EU energy laws. As part of its regular infringement package, the Commission aims to ensure that countries follow the rules set out to promote fair and efficient energy markets across Europe. This month’s decisions include actions on issues related to renewable energy and electricity markets, focusing on Romania, Czechia, France, and Austria.

Romania has been called upon twice by the Commission. The first case involves national measures that restrict the ability of electricity and gas producers to set their prices freely and limit the export of gas. These measures, which require certain producers to contribute excess revenues to a special energy fund and mandate gas sales at fixed prices, go against EU regulations. The Commission argues that these restrictions prevent a competitive and open market for electricity and gas in Romania. Romania has two months to respond to the Commission’s concerns. If no resolution is found, the Commission may issue a reasoned opinion, the next step in the legal process.

In a second case against Romania, the Commission has sent an additional letter of formal notice regarding restrictions on electricity exports and pricing. These measures are seen as violations of the EU’s fundamental principles of free trade and price setting in the energy market. This issue dates back to an infringement procedure that began in April 2023, and despite legislative changes in Romania, the concerns were not addressed. Romania now faces the possibility of further legal action if it does not comply within the given timeframe.

In addition to Romania, the Commission has issued formal reasoned opinions to Czechia and France for failing to fully implement EU rules regarding the internal electricity market. The regulations aim to create a more integrated and competitive energy sector across Europe, with consumer-friendly policies and transparent market practices. Both countries had deadlines to transpose these rules into their national laws by December 2020 but failed to do so entirely. If they do not take action within two months, their cases could be escalated to the Court of Justice of the European Union.

Austria is also facing legal action for not fully incorporating the EU’s Renewable Energy Directive into its national laws. This directive, which sets an EU-wide target of 32% renewable energy by 2030, outlines measures to encourage the development of renewable energy in electricity, heating, cooling, and transport. The Commission first contacted Austria in July 2021 after it missed the deadline for implementing these rules. Despite some efforts to comply, Austria has not fully transposed the required measures, particularly at the regional level. If the necessary steps are not taken, Austria’s case may also be referred to the Court of Justice.

These actions reflect the Commission’s ongoing effort to ensure that all EU member states meet their energy and climate obligations, particularly in the areas of electricity market reform and renewable energy development.