Business

The EU has agreed on emergency measures to cut the bill

Part of the “surplus” of vitality producers might be redistributed to shoppers.

European Union vitality ministers reached settlement on Friday on emergency measures to assist EU households and companies take care of skyrocketing payments, however many say extra wants to be completed heading into winter. Officials endorsed proposals introduced by the European Commission in mid-September, which intention to “tremendous revenue » Power producers to redistribute them to shoppers and cut back peak energy demand.

But they’re nonetheless divided on a cap on the value of fuel imports, which comes up towards significantly German reluctance. “There is not any time to loseTo decrease fuel costs, Czech Energy Minister Jozef Sikela, whose nation holds the EU Council presidency, has requested. Recent leaks in the Nord Stream 1 and a pair of fuel pipelines in the Baltic Sea, condemned by the EU “sabotage“, fueled tensions in the European bloc, already reeling from value surges linked to the battle waged by Russia in Ukraine.

The emergency measures authorised Friday set a compulsory goal for states to cut back their electrical energy consumption.”a minimum of 5%» During peak hours. 27 are additionally known as upon to cut back their month-to-month electrical energy consumption by 10%, an indicative goal. Another measure: an revenue ceiling for electrical energy producers from nuclear and renewable sources (wind, photo voltaic, hydropower) who make distinctive earnings by promoting their manufacturing at costs far above their manufacturing prices. This ceiling is ready at 180 euros per megawatt hour and the distinction between this degree and the wholesale market value have to be recovered by states to redistribute to households and companies. a”Temporary solidarity contributionAlso applies to producers and distributors of fuel, coal and oil.

‘We should act now’

In complete, about 140 billion euros in income might be donated this fashion, in accordance to European Commission President Ursula von der Leyen. But the majority of member states – fifteen, together with France, Belgium, Italy and Spain – imagine that we nonetheless have “The most major problem»: They are calling for a cap on wholesale fuel costs on the European market. These international locations need the system to apply to all fuel imports, not simply from Russia. For the Czech minister, the fee should act shortly: “We are in an influence battle with Russia, winter is coming and we now have to act now (…), not in a month.»

Community executives, like Germany, are reluctant to implement such measures, fearing that capping costs would threaten to curb European provide.”Reliable associateTo provide fuel to the EU for the good thing about different locations akin to Norway or the US. Estonian minister Rina Sikkut additionally got here out towards the thought, saying that “Availability of fuel and safety of provide have been extra necessary than value” In a preparatory doc, the Commission proposed a most value for Russian fuel – transported by pipeline or liquefied pure fuel (LNG) – which at the moment represents 9% of European imports. Russia has traditionally been the EU’s largest fuel provider, accounting for greater than 40% of the fuel bloc. introduced

To decrease costs, Brussels is betting on negotiations with different suppliers of fuel transported by pipeline, however believes that for LNG, negotiating energy is restricted by worldwide competitors. The fee can also be contemplating fixing the value of fuel utilized in energy technology. These choices are being mentioned by ministers and will lead to extra detailed plans forward of a summit of 20-seven leaders in Prague on October 7 and a brand new assembly of vitality ministers on October 11-12.

We should go additional into these issues and we should end extra shortly“, French Minister Agnes Panier-Ranacher additionally speculated. Many EU international locations have already launched assist schemes at nationwide degree to relieve households and companies suffocated by the bill. Like France, which applies a cap on vitality costs, Germany introduced on Thursday that it could launch up to 200 billion further euros to restrict fuel and electrical energy costs.

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