New Trends in Electricity Regulation: the Case of the EU

The European Union has one of the most developed electricity systems in the world. Its citizens and firms normally enjoy reliable and affordable access to electricity wherever they are. Building on this solid starting point, the EU aims to decarbonise its electricity mix over the next decade, expand the use of electricity, and put consumers at the centre.
Delivering efficiently on these commitments challenges regulators across the continent and calls for an evolution of the regulatory framework. Solutions designed in the 1990s during the liberalisation of the industry are no longer entirely fit for purpose. Investment needs in grids have increased sharply due to renewables and electrification of final uses. At the same time, and for similar reasons, distribution grids have gained prominence. Innovation is essential to ensure efficiency while providing high-quality services.