EU power reforms signal less coal and more competition

Fiddler's Ferry coal power station in the UK. (PA)

The EU’s comprehensive electricity market reform package is edging closer to formal adoption after it secured backing from a majority of MEPs in the European Parliament in Strasbourg on Tuesday.

The gas industry will broadly welcome tighter rules for capacity payments, which means it will be much harder for coal-fired plants to participate in national subsidy auctions in the coming years. However – as always – there are loopholes; for example, the new rules will not apply to auctions taking...