Commission asks Cyprus and other 25 member states to transpose new electricity market design rules

The European Commission has sent letters of formal notice to 26 member states, including Cyprus, beginning infringement procedures against these countries for not transposing new rules on electricity market design.

The announcement is part of a package of infringement procedures published by the Commission on 27 March, focusing on cases of non-transposition. Letters of formal notice are the first stage in a process that could end with the Commission taking the cases to the Court of Justice of the EU.

Cyprus is also one of 16 member states that received a letter of formal notice for not fully transposing social legislation in road transport.

On the legislation on the energy market, the Commission sent letters of formal notice to all member states, except Denmark, for failing to fully transpose into national law some of the provisions of the amending Directive EU/2024/1711 which was adopted last year. Member states had to notify the transposition of the Directive by 17 January 2025, except for provisions on free choice of supplier and energy sharing, for which they have until 17 July 2026.

The rules were agreed by the member states and the European Parliament as a response to the surge in energy prices, aiming at making electricity prices for consumers more stable and less dependent on the price of fossil fuels. The legislation also aims to make the cost for consumers more reflective of the cheaper production costs of renewables, and make prices more predictable.

The reformed electricity market design also allows for better consumer protection, both in terms of wider choice at the signature of contracts as well as in case of disconnection. To date, only Denmark declared full transposition of the Directive by the legal deadline.

The 26 member states now have two months to respond, complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

Moreover, the European Commission decided to initiate infringement procedures by sending a letter of formal notice to 16 member states (Belgium, Bulgaria, Denmark, Germany, Estonia, Croatia, Italy, Cyprus, Luxembourg, Hungary, Austria, Portugal, Slovenia, Slovakia, Finland, Sweden) for failing to fully transpose social legislation related to road transport activities.

Member states were required to transpose Delegated Directive 2024/846 into national law by 14 February 2025. The directive updates the rules for classifying offenses that can result in road transport operators losing their good reputation, as outlined in Regulation 1071/2009, which sets the common standards for road transport operators to provide road transport services within the EU.

The member states concerned have two months to respond and to complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.

(Source: CNA)