The European Union’s energy ministers wrapped up their meeting in Luxembourg on Tuesday. no deal on the ceiling gas prices and other emergency measures to intervene in the energy market due to a strong division between countries on solutions, Germany and most silently the Netherlands, and will meet again in a month if technical-level negotiations do not resolve key hurdles.
One week after the European Commission submitted its latest emergency package lower the energy bill and leaders pressure Brussels to set measures, The ministers concluded their meeting by noting that there were still “deep differences” in key elements, according to Czech deputy prime minister and head of Energy Jozef Síkela at a news conference at the end of the day.
Síkela, whose country is holding the EU term presidency this term and leading the negotiations, in the absence of progress, the negotiations will leave room for the advancement of technicians and a new extraordinary council of energy ministers will convene on 24 November, with the difficulty of “agreeing on these measures”.
“I hope I don’t have to ruin everything. Christmas to the ministers”The Czech politician made ironic remarks to highlight the urgency of action on the market before the end of the year and to draw attention to the impatience of some partners, even though the price of gas has fallen below 100 euros per megawatt hour (MWh). Lack of “concrete” measures by the Commission.
emergency measures
“The game is not over and that’s why we need it. emergency measures wherever we are on the (price) curve‘ he argued, to make sure there are instruments that can be activated “in case of great volatility again.”
Síkela thought the discussion this Tuesday at Twenty-Seven added “another important piece to the puzzle”, but cautioned that the Community Manager’s final contribution was the pros and cons of generalizing the call. The ‘Iberian exception’ for the rest of the community market is “not a proposal and we need a proposal to move forward”.
Among the barriers to agreement unaltered rejection of Germany and the Netherlands to set a flexible cap on gas purchase prices for fear that in difficult times it will make it impossible to find reliable sellers in the market at low prices. Conflicting with the reservations of Germany and the Netherlands, the possibility, approved by the EU Heads of State and Government at their last summit, is aimed at extending the agreement. The Iberian model to the rest of the European Union.
Czech minister, European Commission and “Some Member States” do not see the Iberian system as the best way forward as they prefer alternative initiatives, but he insisted that in order to evaluate it, Brussels must comply and submit to what has been entrusted to it. a legal text and an impact study.
Temporarily limit gas price
In an informal document, community services were transferred to the capitals. Extending the system to the rest of the EU, where Spain and Portugal can temporarily limit the price of gas used to generate electricity, would save around 13,000m euros. and will have a positive effect on inflation.
Among the risks, community services point out: Consumption could skyrocket due to an increase in the flow of subsidized electricity to non-community neighbours. In addition to the increase within the EU, such as the UK or Switzerland, “additional gas consumption volume of between 5,000 and 9,000” could lead to million cubic meters (bcm).
Countries that export the most electricity to Brussels and other non-EU countries are also worried about how to solve the problem.a possible sale of electricity at a subsidized price to these neighbors who do not participate in the system while compensating for this ceiling on the gas priceAlthough Spain and other supporters of the measure point to the option of a border arrangement in the form of a double auction as a solution.
“The commission should offer much more specific offers on gas price brokers”In her statements to the press at the end of the meeting in Luxembourg, she drew attention to Teresa Ribera, the third vice-president and head of the Ecological Transition.
“Many Member States wanted the Iberian model to be much more precise about how it would be implemented,” Ribera continued. It didn’t make it possible to get “a lot of progress”, but it made it possible to set demands.