Spain is “disappointed” because the European Commission has not proposed a price cap for all imports of this energy
European Union energy ministers will meet in Brussels on Friday to put a brake on gas prices. On the table are the emergency measures proposed by the European Commission that provide for energy savings of 10% in European countries and 5% in peak hours, a limit on the benefits of infra-marginal technologies and a solidarity percentage for fossil energy companies. The twenty-seven have already reached a political agreement and have given their approval to these measures. In addition, the EU is already considering the next steps, including a price cap for gas imported from Russia.
On joining the European Council, the Third Vice-President and Minister for Ecological Transition, Teresa Ribera, called for a united response, but also ambitious at European level. For example, Ribera has caused the European Commission to “fall short” by not formally proposing a limit on all gas imported into the European Union. That same week, Spain and fifteen other countries asked Brussels to limit the price of this energy, whether it comes from Russia or not.
But there are also many countries that oppose such a measure, because of the risks it poses to the continent’s energy security. And it is that imposing a limit on liquefied natural gas -LNG- gas suppliers could decide to export it to the Asian market, which demands large amounts of this energy. “It is the job of the European Commission to present a balanced text that can count on the support of most countries,” said Energy Commissioner Kadri Simson.
There seems to be a consensus on the need to reduce energy consumption by 10% overall and 5% at peak times, although states are asking for flexibility to tailor the reductions to their specificities. They also support the limit on the benefits of infra-marginal technologies, which at European level will be around 180 euros per megawatt hour. That figure is intended as a framework, from which states may deviate later. Spain already introduced a similar measure in September, with a maximum of 67 euros per megawatt hour, and this tool may continue to work after agreement from energy ministers.
Another major debate will focus on the change in the Dutch TTF benchmark, which is used by traders to buy and sell gas. “Currently, this reference does not correspond to reality and distorts prices,” Ribera noted. For this reason, he hopes that the Twenty-seven will reach a “guideline” that will serve to reduce energy prices “significantly”.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
