Europeans will face a harsh winter after Russian gas blackmail.
Europe is looking for common ground to deal with the huge impact of the energy crisis on household and business budgets.
The "27" energy ministers meet in Brussels today to come up with a "package" of measures to mitigate the heavy costs.
A point of friction in the proposals on the table is the one on the cap on Russian gas, a move that surprised and divided the capitals.
The Greek side is not coming to the extraordinary meeting with a positive attitude towards the Commission's proposal. Asked yesterday about the EU energy ministers' meeting, government spokesman Yannis Economou recalled that the Greek government has been in favour of imposing a cap on gas and decoupling the price of gas from that of electricity.
"The measures that will be decided should not bring more benefits and fewer problems for those who receive them," he said.
Moreover, government sources said that Greece is not satisfied with the Commission's intention to impose a cap exclusively on Russian gas.
The same sources noted that the Greek side believes that the desired solution should also include caps on prices for other major energy markets, such as the US and Asia, as the current system is easily manipulated by the most powerful players and especially by Gazprom, which as the dominant player influences the market.
The potential impact of the measure on the market is causing scepticism in many European capitals, with Russian gas now accounting for only 9% of European imports (up from 40% before the war). And some countries, which remain highly dependent on Moscow for energy, fear disastrous economic consequences.
On Wednesday, Russian President Vladimir Putin spoke of a "completely stupid decision", threatening to cut off all gas supplies to any country that adopts such a mechanism.
"This proposal is not constructive. It is another form of sanction against Moscow rather than a real solution to the energy crisis," was the reaction of Czech Energy Minister Josef Šikela, whose country currently holds the rotating presidency of the European Council.
For its part, Hungary says it "does not understand" this measure, which raises the risk of "causing a shortage."
For its part, Italy envisages a full six-month cap on the price of gas bought by the EU, regardless of its origin, including liquefied natural gas (LNG) transported by ship. Belgium and Greece agree with the idea.
"To tackle the root of the problem, we need a price cap on the entire gas market" and not just on gas imported from Russia, Belgian Prime Minister Alexander de Croix believes.
The Greek side, through Energy Minister Kostas Skreka, will call for immediate and bold measures and decisions, stressing that there is no room for further delays.
The other proposals
In the other proposals tabled by the Commission, there seems to be agreement on the need to reduce electricity consumption, but also on the need to create a mechanism to tax the excess profits of power companies, which would then be used to support households.
There is also agreement on the need to cap wholesale prices on electricity generation from sources other than gas.
Redistribution of "excess profits"
The Commission proposes to cap the revenues of nuclear and renewable energy companies (wind, solar, biomass, hydro) that sell at a price much higher than their production costs.
States can deduct the difference between the cap (a level of 200 euros per megawatt-hour is being discussed) and the market price and redistribute the "excess profits" to vulnerable households and businesses.
"The idea received huge support from states", but "the devil is in the details, the cap has to be decided," a European diplomat said. Berlin and Paris have proposed this mechanism.
At the same time, the European Commission wants to create a "temporary solidarity fee" for producers and distributors of gas, coal and oil who are benefiting from soaring global prices.
A "taboo-free debate" is needed on "energy groups that make extraordinary profits in wartime", Austrian Minister Leonore Gevessler said yesterday (Thursday).
Following the agreement of the 27 at the end of July to limit gas consumption in the EU, the Commission also proposed to set "binding targets" for reducing electricity demand, with a drop for each member state of "at least 10% of net monthly consumption" and "at least 5%" during peak hours.
This proposal was also well received. A European diplomat also noted the "great convergence of views" on supporting energy suppliers facing liquidity shortages in the face of market volatility: European rules should be relaxed to allow them to be quickly offered state guarantees.
Source: skai.gr
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