emcc: Benefits of Market Coupling

Benefits of Cross-Border Competition

Integration of markets, resulting in increasing cross-border competition, brings more actors into the market. Hence customers are given more choice and more variation between offers.

Fair and Competitive Prices

Unlike the regulated national markets that exist today in many parts of Europe, prices should be set where supply meets demand. The market function sends the right signals to both consumers and generators. Consumers are given accurate information on the cost of increased use of electricity, thus stimulating efficient use. Generators get indications on the maximum cost of establishing new generation, creating the prerequisites for fair and competitive prices.

Security of Europe's Energy Supply

Security of energy supply depends on the availability of energy sources, sufficient investments and reliable transmission and distribution systems. An integrated European energy market reduces dependence on a particular country, fuel or trade partner. Also, such a supply structure would facilitate crisis support between countries.

Support for International CO2 Reduction Targets

An integrated energy market will enable European countries to speak with one voice on international energy issues. This would facilitate the EU's ambition for climate change.