Brussels proposes emergency measures to curb energy prices and prepares for difficult winter
The European Union is preparing for a difficult winter. However, with the reduction in gas supplies from Russia, all indications are that the next heating season, that of 2023, will be even more complicated. With this in mind, the European Commission on Tuesday proposed new measures to reduce gas prices and wants to force member states to buy 15% of the gas needed to jointly replenish their reserves. This proposal will be discussed at the leaders’ summit next Thursday and Friday in Brussels
This initiative aims to add demand from European countries to lower the high energy price and avoid mutual competition, favoring smaller countries. The joint gas purchasing platform was established in June, but is not yet operational. The idea of setting a minimum of 15% – which equates to some 13,500 million cubic meters of gas – is “enough to secure the supply while ensuring that we don’t put all our eggs in the same basket,” it stated. an official European source.
At the same time, Brussels the Twenty-seven proposes to create a temporary instrument to correct the volatility of the gas market. In the meantime, work is underway to create a new benchmark index reflecting the price of liquefied natural gas (LNG), which will come into effect in March. Currently, the European benchmark – the Dutch TTF, which determines the price of gas that arrives by pipeline – is pushing energy prices even further. “With the reduction of gas reaching Europe through pipelines, its price has skyrocketed,” the same sources say.
The extension of the ‘Iberian exception’ is not included in this emergency package, as the European Commission must “analyze all the risks” of adopting such a mechanism. The proposal to limit gas consumption for electricity generation has been hanging over the European negotiating tables for months and more and more countries are defending such a measure. In addition, fifteen countries – including Spain – have asked the Commission to impose a limit on all gas imported into the EU.
At the same time, the block is preparing for an emergency. If necessary, if there is a gas shortage or if there are serious supply disruptions, two Member States can declare a European state of emergency. “There, the solidarity mechanisms would come into effect, which would distribute the stored gas among the European countries.”
The European Commission estimates that the countries of Eastern and Central Europe will be most affected in the event of supply constraints, as they have no alternative supply routes. Currently, however, there are only six such agreements, so Brussels is trying to promote a framework agreement at European level, which would lay the foundation for cooperation between EU countries – how much gas should be contributed, how and at what price.
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.
