The European Commission confirms that, in this exceptional situation, Member States can regulate retail prices for electricity and gas for household customers and small businesses, writes e-nergia.ro.

“The Commission confirms the possibility of regulating prices and transfer mechanisms to protect consumers and our economy, in accordance with EU law. The legal framework for the electricity market, and in particular Article 5 of the Electricity Directive, allows Member States, in the current exceptional circumstances, to extend their support schemes and set retail prices for households and micro-enterprises.”

The statement appears in a draft Commission document in which Member States vote to consult on the establishment of a so-called Temporary Crisis Framework in response to the economic effects of the war in Ukraine.

“EU state aid rules provide Member States with options to provide short-term aid to companies affected by high energy prices and to help reduce their exposure to medium and long-term energy price volatility. For example, Member States may provide temporary assistance to companies facing liquidity needs due to current high energy prices, regardless of their size, on the basis of rescue and restructuring aid guidelines. The Commission will deal with those cases as a matter of priority, paying special attention to gas suppliers and intermediaries who are facing increased supply costs due to the termination of contracts,” the Commission added.