The European Commission has released an interim report on electricity capacity mechanisms in the EU, indicating that although these can reinforce electricity supply security many EU member states need to do more to ensure they are focused and cost-effective measures.

The report also pointed out that badly designed capacity mechanisms can distort competition, affect transboundary power trade, and lead to higher costs for consumers.

Brussels has forwarded a request for all EU member states, agencies, and enterprises in the sector to submit comments to help facilitate the capacity mechanism assessment procedure’s continuation, until the European Commission makes final decisions.

“The report shows that there is a lot of room for member states to improve how they assess whether capacity mechanisms are needed, and how they design them,” remarked Margrethe Vestager, the European Commissioner for Competition. “For a capacity mechanism to be well-designed, it needs to be open and take into account electricity that can be provided across EU borders.”

Vestager described Greece as a special case as the country’s energy market has not yet been liberalized, adding that the situation needs to gradually change.