Response to the draft Regulation to improve the EU’s electricity market design

ESMIG welcomes the European Commission’s proposal to improve and optimise the EU’s electricity market design. The energy crisis has brought new challenges for the EU electricity market, very high prices and security of energy supply becoming major concerns. This reform must lead to a more resilient market, contain excessive price volatility, and ensure secure energy supplies, especially from clean sources.

Increasing the active participation of consumers is key to reduce their energy bills, decrease the overall energy consumption and increase the uptake of renewables, in keeping the benefits which dynamic tariffs can bring to consumers. In this context, ESMIG welcomes the new proposals on Demand Side Flexibility, notably the introduction of peak shaving products to enable demand response and decrease electricity consumption at peak times and the proposals for flexibility support schemes.

The deployment of smart meters is a prerequisite for the development of smart electricity grids enabling demand side flexibility. Smart metering brings tangible energy savings, empowers consumers to better manage their energy, and enables the integration of a growing share of renewables, supporting the green energy transition and reducing the reliance on fossil fuels and energy imports.

Accelerating and completing the roll-out of smart meters across Europe is therefore essential to enable demand side flexibility: The lack of smart meters, and consequently lack of consumer visibility on their consumption (currently only an average of 54% of household consumers are equipped with intelligent/smart meters) has been recognised by the Commission[i] as the first barrier in delivering flexibility.

Finally, in addition to this proposal, the implementation of all existing EU provisions for flexible consumption and generation in Member States is key to tap into the full potential of Demand Side flexibility.

Find the draft Regulation here.


[i] 1 Smart Grid Task Force Expert Group 3 report on Consumers’ Empowerment, December 2022 (page 7)




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