Brussels finalizes proposal to temporarily cap gas
The European Commission has finalized a proposal for a “market reform mechanism”. That is, a temporary cap on gas prices. This was communicated to the 27 leaders of the European Union by the President of the European Commission, Ursula von der Leyen, and
Czech Prime Minister, rotating President of the Council of the European Union, Petr Fiala. Energy Commissioner Kadri Simson made the announcement on Twitter.
“The European Commission is committed to providing an effective mechanism to limit excessive gas prices in line with our proposal of 18 October and in line with the conclusions of the European Council”, Simson said: “We will present an outline of the gas market reform next week. mechanism and soon thereafter a legislative proposal”.
“The Commission is working closely with Member States and is fully committed to moving forward without delay with concrete proposals for an effective market reform mechanism, fully respecting the conclusions of the European Council and the principles set out therein,” Vaughan said in a letter. der Leyen and Fiala: “The EU must have a mechanism that limits the episodes of excessive gas prices we experienced in August”.
Thus, the Community Executive will present a detailed outline of the proposal for a “market reform mechanism (‘temporary gas price cap’) that takes into account the conditions and guarantees requested by the Member States, in time for the Ministers to discuss it. Meeting of Energy Ministers on 24 November.
According to Fiala and von der Leyen, “the Commission will be ready to submit to the next European Council [el ordinario está previsto para el 15-16 de diciembre] Assessment of potential index in gas supply. Therefore, our main challenge is to ensure that we have enough gas available to fill storage before the winter of 2023/24. That requires accessing markets in a more coordinated way, under our shared energy platform for demand aggregation and joint procurement, while maintaining our efforts to reduce demand and stabilize markets and prices.
“Finally,” the letter said, “the Commission is responding to calls from the European Council to accelerate structural reforms of the European electricity market, in particular to reduce the impact of gas on electricity prices. A legislative proposal is planned for early next year.”
Section in 27
27 will remain divided. Basically because of Germany’s opposition, gas prices contaminate electricity bills in the same way that it infects the Netherlands and the European Commission. And, as a result, the debate on capping gas prices has stalled, following in the footsteps of the last European Council last week. So much so that the Vice-President for Environmental Transition, Teresa Ribera, at the last meeting of energy ministers, as the current Czech President of the Council of the European Union, asked the European Commission for more specificity with a view to a new Extraordinary Council. of Ministers on 24 November. But the energy commissioner, Kadri Simson, downplayed the possibility on October 18: “There is no consensus on the Europeanization of the Iberian exception or the dynamic price corridor before the creation of a new complementary index to the TTF. Spring”.
For German Chancellor and Climate Action Minister, Robert Habeck. A cap on gas prices is “not the right tool”, stressing that “gas prices have dropped significantly again today as a result of the measures taken in recent weeks, which means that storage facilities are full and we are creating alternatives. Infrastructure markets are confident that Europe’s Energy supply will work and prices will come down. There is agreement that we will create a joint procurement platform, that we want to reduce energy consumption, that we want to increase renewable energy more rapidly, and that the European Commission should make proposals on how to do that. And We are clear that we want to avoid supply issues.” What Habeck did not explain was the effect on the price drop that Germany had to stop buying gas to replenish its reserves.
Dutch Minister for Climate Action Rob Jetten said: “The Netherlands would like to see better impact analysis [sobre la europeización de la excepción ibérica] Because we are concerned about security of supply in Europe and we want such measures to be accompanied by mandatory demand reduction across Europe, as this is the fastest way to reduce pressure on the gas market. Several countries, including the Netherlands, have indicated today that the measures lead to large amounts of electricity being exported to non-EU countries and more gas being used in Europe.
Vice President Ribera, for her part, said that “there are many member states that have asked the Commission to be more precise in its analysis of how to implement the so-called Iberian system throughout the region, without risking leakage to third states. On November 24 we will have an extraordinary energy conference, where The Commission will have to present these proposals more precisely.To be sure, there are still some Member States that are reluctant to worry about these kinds of decisions.
The European Commission is going to present this proposal in the next few days, as stated by the Energy Commissioner. Then, it will be seen what it includes and what support it has.
*The article has been translated based on the content of eldiario.es. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!
For all the latest news click here
Denial of responsibility! WHICHLEDLIGHT.COM is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at email@example.com The content will be deleted within 24 hours.