Understanding the Story: Gas as a Reference for Electricity Prices in Brussels

Do you want to understand the story that Brussels is imposing gas as a reference for electricity prices? Just go back ten years. On March 22, 2016, in front of the National Assembly, Emmanuel Macron accurately described the functioning of the European electricity market. He then explained that the price of electricity was directly linked to coal, a marginal technology at the time, in a context of overcapacity and falling prices. This reminder is essential: the mechanism described today is nothing new. It was known, understood, and accepted.

Since the energy crisis, a narrative has gradually emerged in the public debate: the price of electricity is indexed on gas because of Brussels. This simple and impactful idea has the political advantage of assigning an external scapegoat while avoiding the complexity of the actual functioning of the markets. It transforms an economic question into a slogan. But on the substance, it is misleading.

The price of electricity in Europe does not result from an arbitrary administrative decision or a political will to artificially link electricity to gas. It stems from…