Breaking the marginal price link gets widespread backing

Support for decoupling renewable electricity prices from the gas marginal price is widening, according to Energy Live News. The report does not quantify the share of respondents backing the change, but describes the support as widespread across stakeholders consulted.

The core regulatory question is whether the merit-order mechanism, which currently allows gas peakers to set the clearing price for the entire hour, should continue to apply when renewables dominate dispatch. Proponents argue the link inflates consumer bills and distorts investment signals for low-carbon assets. Opponents flag liquidity and hedging risks if a split market emerges.

No timeline or specific zone has been attached to the proposals as reported. Analysts tracking EU electricity market reform should watch for ACER and national regulatory authority positions, which will determine whether any structural change reaches the legislative stage.