Price distortions in the European Union’s energy market must be addressed urgently to ensure fair competition and stable electricity costs across member states, according to Portugal’s Energy and Environment Minister Maria da Graça Carvalho. Speaking to Euronews, the minister said the European Commission has a central role to play as countries invest heavily in upgrading power grid infrastructure to meet future demand.
Carvalho, who previously led political negotiations on EU electricity market reform, said maintaining a level playing field among member states will be essential if the bloc wants to bring down power prices in a balanced and sustainable way. She warned that uneven national interventions risk fragmenting the single market and undermining industrial competitiveness.
According to the minister, energy prices cannot be treated as a purely domestic issue. If one country manages to significantly lower electricity costs through artificial or heavily subsidised measures, it will inevitably affect neighbouring states. Industries in countries facing higher prices could be placed at a serious disadvantage, distorting competition and potentially triggering production shifts within the EU.
Carvalho argued that this is precisely why the European Commission must act as a strong referee. She said the Commission’s responsibility is to uphold the integrity of the single market enforcing common rules and ensuring that national energy policies do not undermine fair competition.
As Europe accelerates investment in electricity grids to accommodate renewable energy, electrification and digitalisation, the risk of divergence is growing. Wealthier countries may be better positioned to support their energy companies or fast track infrastructure projects, while others struggle to keep pace. Without oversight, this could widen economic gaps rather than strengthen cohesion.
Carvalho stressed that government support for energy companies is not inherently problematic but must be governed clear and transparent rules. She said state aid measures should be carefully monitored to ensure they comply with competition law and do not give unfair advantages to specific national industries.
The Portuguese minister noted that recent energy shocks exposed weaknesses in the EU’s market design, prompting reforms aimed at improving resilience and price stability. However, she cautioned that reforms will fall short if implementation varies widely between countries. In her view, coordinated action is just as important as legislative change.
Portugal has been a vocal supporter of deeper integration in the energy market, arguing that cross border cooperation and shared infrastructure are key to lowering costs for consumers and businesses. Carvalho said grid upgrades offer a major opportunity to make the system more efficient, but only if investments are aligned and rules are applied consistently.
She also pointed to the broader geopolitical context, noting that energy independence and affordability are now central to Europe’s economic security. Distorted prices, she said, weaken the EU’s industrial base at a time when global competition is intensifying and companies are sensitive to energy costs.
Ultimately, Carvalho said the Commission must ensure that national energy policies serve collective goals rather than narrow interests. enforcing competition rules and overseeing state support, Brussels can help prevent a race to the bottom and ensure that electricity prices fall fairly across the bloc.
For consumers and businesses alike, she argued, ending price distortions is not just a legal necessity but an economic imperative. A truly integrated and competitive energy market, she said, remains one of the EU’s most powerful tools for delivering stability, growth and fairness.
