What package of measures most European Union aims to intervene in the electricity market urgently for Europe lower their prices electricity billentered its final term this week. The energy ministers of the European Union are convening an extraordinary council this Friday to finalize a three-pillar emergency arrangement agreement.consumption reduction electric, upper limit of extraordinary benefits marginal energy producers and solidarity contribution According to diplomatic sources, energy companies It doesn’t force you to retouch the tax designed by your government. Pedro Sanchez to cut the ‘falling profits’ of major energy companies.
“We hope to arrive with our model intact. “It’s a challenge for us on Friday,” Spanish diplomatic sources said. While the European Commission had already expressed its intention at the time of the presentation of the proposal that equivalent national measures could be maintained and implemented, Member States were able to reinforce this commitment in the text to be submitted for discussion on Friday. “The good news is that in the new version the guarantees that national laws are enforced in Member States already in force have been strengthened. That part is saved and we can continue to act on the income.”, other diplomatic sources mentioned the tax model designed by Spain, which would tax not only the profits proposed by Brussels, but also the income of all energy companies, proposing a “solidarity contribution” of 33% of the extra profit. oil companies, refineries and gas companies.
Iberian exception
Spain also considers the Iberian exception, which allows it to temporarily decouple the price of gas from electricity – until May 2023 – saves, but like other countries it considers the 180 euros per MWh limit proposed by Brussels for the sub-marginal. The renewable or nuclear energies they have to return their income to are very high. In addition to the tax on the extraordinary profits of oil companies and the cap on the charging of marginal energies, Twenty-Seven is a agreement on the reduction of electricity consumption, which is a much less controversial and “mature” elementas the proposal assures governments that they can voluntarily apply the 10% cut with flexibility and determine the busiest times of the day when they will have to reduce the mandatory 5%.
Although the last preparatory meeting by ambassadors this Wednesday did not allow for an agreement to be reached, and the EU’s Czech presidency has once again amended the proposal to accommodate different positions and sensitivities, European sources think the text does not allow for an agreement to be reached. The basis for the final negotiation this Friday is “pretty stable”. “Unconfirmed, but the majority Member States’ concerns taken into account”, describe the same sources.
gas price cap
Twenty-Seven, at its meeting on Friday, wholesale gas price cap a measure requested by 15 Member States, including Spain, Portugal, Greece or France, in the framework of the discussion of limiting high gas prices from third countries. This is a measure that has divided Member States in recent months. While some see it as a panacea, for others it will threaten Europe’s security of supply and increase consumption at a time when the EU must reduce demand.
In any case, the pressure on the European Commission, which was handed over to debate among the twenty-seven members this Wednesday, is starting to take effect. new off-paper on possible emergency response in the gas market. The report acknowledges that “putting an cap on the price of gas would be complex, as limiting wholesale prices across all intra-community exchanges would, among other things, require replacing the market with a centralized system for the allocation and allocation of gas, and financing the difference between the maximum price and the global market price. “.
With this in mind, Brussels opens up different possibilities. To start, negotiate with reliable supply partners and a joint agreement to lower prices within a reasonable time. “While the preferred option is a mutually agreed upon approach with trusted partners, the EU’s main objective is to guarantee lower prices to EU consumers this winter. Therefore, the EU must be prepared to take measures to limit prices.” Commission.
Brussels also proposes the implementation of the Iberian exemption at European level for the first time, through “a European provisional framework to limit the impact of high gas prices on the formation of electricity prices”. One option, taking into account the experience of some partners, such as Spain, Portugal or Greece, would be to set a cap on the price of gas in electricity generation at a level that would help lower electricity prices. increase in consumption. “The cost difference between the ceiling price and the market price will be borne by the electricity system in the Member States”, since the Commission, insisting on the idea of setting a maximum price for gas imports from Russia, will limit the price of this fuel enter the EU and it would help reduce your income Kremlin. The document also mentions improving the functioning of the energy products wholesale market and improving liquidity through a new temporary aid framework that will be available by mid-October.