this corrective mechanism gas price recommended by European Commission created a new division between energy ministers European Union They will discuss for the first time this Thursday the legislative proposal put forward by Mr. European Commission. Welcomed with initiative total skepticism by governments that have been demanding and considering such a solution for months unrealistic, inadequate, unpretentious and impossible to act on, unless there is a market crash and infrastructure destruction.
“This is not a serious proposition, it’s a joke,” the minister and third vice president for Spain’s Ecological Transition said this Thursday. Teresa Ribera. “Not enough,” says his French colleague, Agnes Pannier-Runcherwarns that the text did not respond to the mandate of the Council of Europe in October. “The project presented by the commission is insufficient and does not respond to the state of gas prices. The commission needs to propose a coherent and functional text. It’s not just because it’s a political stance and could potentially have adverse or zero effects”, add sources from the French Ministry of Energy Transition, warning that implementation is impossible unless there is a break in the market.
ignited souls
“Imposed conditions make commissioning possible or almost impossible, and this is not what the 16 countries asking for caps on gas are demanding,” the Malta minister said. Miriam Dalli.
The Twenty-Seven, whose souls are on fire, fourth Extraordinary Council Meeting of Energy Ministers, convened by the Czech EU presidency since July, where they will try to reach a political agreement on energy emergency arrangement A second arrangement, which includes joint gas purchases, solidarity in case of crisis and other commitments, as well as the proposed October accelerate the deployment of renewable energy. At least if the gas cap’s explosive file doesn’t prevent that and eventually prevents both files from being approved.
“We had a problem because the commission couldn’t bid. Now we have another problem because it’s out. I can only say that I’ve been repeating it all along. I’m ready to convene as many extraordinary councils as needed.” Reaching an agreement”, said the Czech minister when he arrived at the meeting Jozef Sikela.
serious differences
In any case, the debate will revolve around the initiative that Brussels refuses to propose: limiting gas. this preliminary discussion Held between ambassadors this Wednesday to lay the groundwork for ministers, it revealed crucial “differences” between Twenty-seven on the concept and the parameters chosen by the Commission. Those who do not support the creation of a ceiling as before HollandThe same sources say they haven’t changed their minds, but everything is a problem.
“We were strongly opposed to this concept. Not because it’s an ideological thing, but we’re clearly very, very worried about the risks”, diplomatic sources assure, pointing to supply risk, which according to the Dutch analysis does not change Brussels’ proposal.
Although they do not exclude examining any element a priori, they understand that this cannot happen at any cost. “Our analysis right now is that the European Commission’s proposal for the Netherlands could put supply at risk,” the same sources insist, insisting that “the only real solution” is to save energy and change the energy ‘mix’. . It’s the same element that worries other northern countries. “Estonia willing to negotiate and the offer on the table is good but the measure should be temporary and only valid for extreme price increases. “We can’t risk the security of supply,” he said. Riina SikkutWhen he arrived at the Council.
Conditions
In fact, the proposal does not suggest an upper limit, but instead creates a correction mechanism if the following events occur: extraordinary peaks. Two conditions had to be met for him to enter the scene. The first is that the gas price will exceed 275 euros per megawatt hour for two weeks on the TTF futures market, the reference Dutch market where 80% of European transactions are carried out. Second, the difference in liquefied natural gas (LNG) in international markets will exceed 58 euros.
Two conditions that will not allow the mechanism to come into play, even in August, when prices hit record highs and reached 350 euros per megawatt hour. In addition, the system includes a set of safeguards that allow the cap to be automatically disabled or the European Commission to decide if the corrective mechanism determines that the stability of the financial markets or the security of supply has been minimized. risk. Risk that the Netherlands will continue to reject the introduction of the mechanism.