Decisions taken so far by the European Union energy crisis They weren’t enough, and 27 stepped up contacts and preparations to adopt a new set of measures to help lower gas prices. As explained by energy broker Kadri Simson, most European Commission Next Tuesday, October 18, he will present a new package of measures that will include a “temporary mechanism”. to limit gas price, while reviewing for next year Dutch price index TTFa joint purchasing platform allowing to use common purchasing power to limit prices and New measures to reduce consumption.
“Immediately after the start of the war, we offered to end Russia’s energy dependence. We launched a joint (gas) storage strategy in the spring. We agreed to cut gas demand in July and last week the Council agreed to cut electricity demand (…) But It is clear that further action is needed as prices are still unsustainably high.“The gas flow through Russia’s pipeline has dropped below 10%, and attacks on EU infrastructure add to the uncertainty,” he said.
Simson took advantage of the meeting to argue with Twenty-Seven. A new set of measures that will see the light two days before the new summit of European leaders on 20 and 21 October requesting “concrete and clear” offers last Friday. In the first instance and as requested by countries such as Spain, the European Commission will commit to submitting a legislative proposal to the European Commission. reform in the gas price index, Dutch TTF (Title Transfer Facility), the main reference for negotiating contracts in Europe. “It no longer represents the reality of the EU energy market and artificially inflates prices. We need to develop an alternative criterion and the Commission is preparing a bill in this direction. Next week we will explain in more detail what this means.”, the commissioner explained.
Given that this measure will have no effect until at least the next tank filling season, the European Commission hopes to achieve price reductions and better conditions. negotiation with partners considered reliable. This situation Norway, the minister attending meetings in Prague; anyone Algeria, a country that Simson visited this week. This remains the preferred option, but Brussels recognizes the need to be prepared in the event that negotiations do not conclude quickly and therefore “a temporary mechanism to limit prices”. “As part of the next package, we will demonstrate how this mechanism can work and how we can reduce the risks it inevitably involves.”
More gas savings
Second, the new plan will also include new measures. further reduce gas demand. One option would be to activate the EU alert, which will enforce the 15% demand reduction target. However, Brussels does not exclude different approaches or further measures to ensure that the level of savings is adequate. In any case, the Commissioner warned, “any measure to lower prices should not send false signals that lead to increased consumption across the EU”.
Brussels intention to include in new battery solidarity measuresso that all Member States have such an agreement in case of supply problems and Joint gas purchases in 2023 About what happened, according to the Czech energy minister, Jozef Sikela, general consensus. Regarding a measure called for to help the younger or disadvantaged, Simson said: “This will allow the EU to use our collective purchasing power to limit prices and prevent member states from competing with each other in the market and raising prices in doing so.” EU countries when it comes to negotiation.
What is not yet clear is that the attempt upper limit on the price of gas used to generate electricity, in line with the Iberian exception of Spain and Portugal, as suggested by European Commission president Ursula von der Leyen last week and France claimed tooth and nail. “The proposal will include aspects for which we have maximum consensus support, so we will see how we can continue to limit gas for electricity generation if there is a majority at this stage,” the commissioner said. For example, the idea is still not liked or Netherlands or Germany. “Measures that can increase gas demand in the electricity sector and target cross-border rents should be very carefully considered and include burden sharing,” Berlin and The Hague wrote in a joint document.
In parallel, the Commission also electricity market reform. According to their estimates, the aim is to initiate a discussion with Twenty-Seven with the aim of presenting the first results along with the main elements of reform by the end of the year, followed by a proposal for legislation in early 2023.