Nicosia, Cyprus. The Cyprus Association of Electricity Suppliers’ Representatives (Sepie) said a competitive electricity market remains the most efficient model for achieving lower costs for consumers and a sustainable energy transition. The statement followed public debate over potential changes to market design.
Sepie position on market design
Sepie said the competitive electricity market model applied across the European Union is “the most efficient, transparent and effective model of market operation”. It said the framework ensures optimal use of available resources and supports the formation of affordable electricity prices.
Support from European organisations
According to Sepie, its position is supported by two European energy organisations, Europex and Eurelectric. Europex is a Brussels-based non-profit representing 37 energy market operators and advocates for transparent and integrated wholesale market design to support EU climate goals. Eurelectric is the sector association representing the interests of the European electricity industry.
Europex statement on marginal pricing
Sepie cited an official Europex statement issued on March 12, 2026, which said marginal pricing, underpinning the competitive market, is “the most efficient foundation for electricity markets”. Europex said the mechanism minimises overall system costs, enhances transparency, and facilitates the integration of renewable energy sources.
Warning against frequent changes
According to Sepie, Europex said European institutions have concluded that the current market design is functioning effectively and should be maintained. It also warned that frequent changes could undermine long-term investment planning and increase uncertainty in the market.
What changes, if any, do you think should be made to the electricity market design?
