Critics argue that as companies reduce their electricity consumption, power stations produce less electricity and so require fewer EU Allowances; other entities covered by the ETS are then able to use these allowances for their own emissions.
Critics suggest that when companies reduce their electricity consumption, power stations produce less electricity, resulting in a reduced need for EU Allowances. This creates an opportunity for other entities subject to the ETS to use these allowances to compensate for their own greenhouse gas emissions.