EU parliament on Tuesday approved new rules to create a Europe-wide market for electricity that is cleaner, more competitive and better able to cope with risks.

The Clean Energy for All Europeans package empowers European consumers to become active players in the energy transition and creates the first national energy and climate plans. Among its rules, the legislation provides that consumers receive smart meters, dynamic pricing and the option to switch provider more quickly. Additionally, state aid to fossil-fuelled power plants will be phased out and measures have been enacted to prevent electricity blackouts.

The rapporteur on the internal market for electricity, Jerry Buzek, said the electricity market reform should make the sector more competitive across EU borders and support the transition to cleaner electricity. “It gives more power to consumers and protects the energy-poor. It is good for the environment and good for the wallet.”

By allowing electricity to move freely to where it is most needed and when it is most needed through undistorted price signals, consumers will benefit from cross-border competition. “This will drive the investments necessary to provide security of supply, whilst decarbonizing the European energy system.”

Following this parliamentary approval, the Council of Ministers of the EU will have to formally approve the texts of the Directive and three Regulations, after which the new laws will be published in the Official Journal of the Union.