Power Price Crisis in the EU : Unveiling Current Policy Responses and Proposing a Balanced Regulatory Remedy

Confronted with sustained high electricity prices, some Member States demand a deep reform of electricity markets in the EU. Conversely, other Member States ask to strictly respect the current market framework. In this comment, we review what these governments have publicly stated, and we describe the concrete measures introduced or considered to date. Then, we assess these measures. We close by prescribing first-best measures and proposing an alternative in case first-best measures are deemed insufficient, politically infeasible and/or economically unsustainable