Now that at least the electricity bill is supported by the state in Austria, the EU is now taking on the increased gas prices. Due to the deteriorating situation on the energy markets, the European Commission is now investigating measures to limit the gas price.
On the one hand, it concerns the possibility of agreeing a maximum purchase price for Russian gas, as evidenced by an internal document available to the German news agency. Another option is to cap the price on European trading platforms under certain conditions.
Russia could stop deliveries altogether
The second option, in particular, could be used as an emergency measure to prevent further price increases. The first could mainly lead to the Russian state’s income from energy deals being limited. According to the newspaper, a price cap for Russian gas could be introduced by law – similar to the sanctions. Alternatively, the EU as an individual buyer could negotiate prices and volumes with Russia. However, the paper’s authors warn that Russia would be unable to supply more if there were a price cap.
“This option should only be considered if the EU is willing to accept a complete cessation of Russian gas supplies.” Since Russia has stopped deliveries via Nord Stream 1, very little Russian gas has flowed into Europe via Ukraine and Turkey anyway.
Gas must continue to flow where it is needed
The second proposal aims to limit wholesale gas prices in EU regions particularly affected by Russian supply interruptions and high prices, for example in Central and Eastern Europe, including Germany. The price ceiling in these “red zones” could be linked to the price on the gas trading platform TTF and would therefore be flexible. However, the Commission warned that it would be difficult to manage regional price caps and ensure that gas gets where it is needed.
A turnaround in energy policy?
In an earlier draft, the EU commission advised not to restrict gas prices across the EU. Such measures could lead to an increase in the demand for electricity and gas and pose a risk to the continuity of the electricity supply, according to the earlier newspaper. The internal discussion papers have not yet been coordinated within the Commission or their legal feasibility checked.
On Friday, EU energy ministers will meet to discuss various options, including skimming excessive profits from certain electricity producers. Technical discussions must take place in advance.
Source: Krone
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.
