In line with the EU vision for a carbon neutral economy by 2050, the role of gas in the energy mix is expected to change considerably over the coming years – not only will gas volumes be shrinking, but more profoundly, gas generation and consumption will be transformed. Such changes have wide reaching implications for the sector, including the suitability of infrastructure and allocation of its costs to different uses. The current EU tariff model of charging on the basis of consumption well supported the transition from a vertically integrated organisation of the gas industry, to a single liberalised market. However, if the network persists with this approach the recovery of its costs will be based on charges on an increasingly small number of consumers. Moreover, as regions decarbonise at different speeds or choose different energy pathways, these dynamics will develop differently across the EU. Redesigning the tariff charging methodologies can avoid these potentially unfair allocations of costs. This Report explores different tariff methodologies to assess their advantages and drawbacks within the context of the expected new conditions of the gas sector, as well as the potential policy implications.
We examine the optimal behavior of carbon-emitting companies operating under the European Union Emission Trading System (EU ETS), under which firms are obliged to purchase emission permits on the secondary [...]
The Brief explores pathways to promote a sustainable agricultural trade regime for the EU. We identify three challenges and propose three potential paths forward. We discuss potential implications of the [...]
The rewable energy resources within EU27 are highly dominated by wind and solar energy delivering electricity as output. As electrification is the most efficient way to deliver the energy services [...]
Manufacturing firms in the EU face the double challenge of decarbonisation and (international) competitive pressure. Based on the key findings of the 2024 EIB investment survey and considering the economic [...]
Regulation 1370/2007, as amended by the Fourth Railway Package, set the date of 25 December 2023 for the opening to competition of services subject to public service obligations. As opposed [...]
This policy brief contends that a new approach to Long Term Contracts (LTCs) in European competition policy based on new facts, new realities and a revised reasoning must be urgently [...]
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