A plan to deal with the energy crisis is being drawn up by European Commission studying, among other things, the imposition of a ceiling on the prices of Russian oil and natural gas as well as the decoupling of the price of electricity from the price of natural gas, a position that Greece also promotes. Russia’s reaction was immediate threatens to stop the sale of natural gas and oil to any countries that put a cap.
Russia’s Deputy Prime Minister Alexander Novak said such a thing would be paranoid. “This is a move that constitutes an intervention in the mechanisms of the free market, and indeed of such an important market as oil,” he stressed.
“We are looking at the possibility of price caps. In terms of electricity prices, we are also looking at short-term measures, emergency measures, to avoid these huge bills, to protect vulnerable consumers but not only them but also middle-income households or businesses,” she said earlier. Deputy Director of the Commission’s Energy Department Mathilde Versdorfer.
A few days after the extraordinary Council of Energy Ministers of the Union on September 9, the President of the Commission Ursula von der Leyen will refer in her State of the Union speech to the Commission’s relevant proposals which, in addition to the ceilings, are expected, according to a draft cited by the Reuters agency, to include incentives to reduce consumption as well as proposals for a more general long-term reform of the energy sector.
THE imposing a price ceiling on Russian natural gas will be discussedaccording to a White House announcement, and at the upcoming G7 finance ministers’ meeting.
Meanwhile, European countries are already taking energy-saving measures ahead of winter. THE Germany put into effect the limitation of heating and lighting in public spaces with the maximum temperature in public buildings at 19 degrees Celsius. But in a further blow to consumers, the reduced prices on public transport and the price of petrol ended after three months.
In reduction of energy consumption in public spaces is also progressing Belgium which also initiates the taxation of the surplus profits of energy providers.
Consumer relief measures are also adopted by Spain with a program of discounts on means of transport but also reduction of VAT on the price of natural gas from 21% to 5%.
“The reduction will be in effect from October until December 31 but we are open to extending the measure throughout the coming year, as long as this difficult situation we are facing lasts,” the prime minister said. Pedro Sanchez.
As for her Britain where household income is expected to decrease by 10%, Prime Minister Johnson announced boosting the nuclear energy sector by investing £700 million in the construction of a new nuclear power station.
The Europeans are engaged in a race to find a common solution and a common line in dealing with energy prices with the ceiling on the table at the upcoming council of energy ministers.
Edited by: Leda Papadopoulou, Cleo Nikolaou
The Northerners are moving towards the Greece-Italy line
The European powers such as Germany and the European Commission are moving in a change of course and strategy.
Seeing the emergency we are in, the cap on energy prices, proposal made by Greece and Italy, is now at the center of the Commission, which is looking for the ways and technical adjustments needed to implement this measure, while until now there was greater skepticism.
However, a small rift had already appeared since the Energy Council of July when during the discussions and the proposal of Greece for the untying of electricity and natural gas prices, the German Minister was not negative.
What we expect on September 9 is to submit the proposals that have qualified to discuss the pros and cons and proceed with additional moves.
On 7/9 the Permanent Representatives will meet with a more definitive line.
response from Brussels: Irini Zarkadoula
“Breathe” in the energy exchange
The change of attitude at the European level regarding the need to take action to find a solution to the skyrocketing prices of natural gas and by extension electricity seems to be bringing the first results on the price front, which seem to be holding back.
Natural gas prices in Amsterdam Stock Exchange despite the small rise today to €244 per megawatt hour, are at 2-week lows.
Reasons: the increase in flows from Norway that offset concerns about the closure of Nord Stream, the fact that France and Germany are earlier reaching the target of 80% natural gas capacity from October, as well as the announcement by the Commission that it is considering options to curb energy prices and reduce electricity demand.
Indicative of the prevailing climate, especially in the previous month, is also the fact that the price of electricity in our country within a month increased by 29%.
The average wholesale price of electricity in Greece reached August at a record high, at 436 euros per megawatt hour, marking a 29% increase compared to July.
Of course, we should note that in August, the new bill subsidy system was implemented for the first time, with the price of a kilowatt hour averaging 15 euros per kilowatt hour.
Editor: Rallou Alexopoulos