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Gas emergency, EU towards mandatory cut in consumption up to 4 hours

Brussels will present the answers to be put in place to react to the gas emergency by tomorrow - Meanwhile the cost of gas is back below 200 euros per megawatt hour

Gas emergency, EU towards mandatory cut in consumption up to 4 hours

The EU towards mandatory cut in electricity consumption. Among the proposals that the European Commission will present in the matter of contrasting energy costs there should also be the obligatory target of reducing electricity consumption during peak hours, in a daily time slot of 3 or 4 hours. On the choice of times, the EU would be willing to leave the Member States a certain margin of discretion. This is what emerges from draft regulation on the subject, viewed by various international agencies.

Last week, on the occasion of a meeting of ministersDeep divisions have emerged and governments are likely to push to change Commission President Ursula Von der Leyen's plan.

Meanwhile the gas price back below 200 euros per megawatt hour (around 191 euros at around 17pm on Monday 15 September).

Gas crisis: EU proposals

The draft also proposes a Mandatory revenue cap of the operators that produce energy from renewable, nuclear and lignite, i.e. different from gas. The limit will apply to revenues per megawatt-hour of electricity produced. The excess portion of revenues will be used to compensate for the economic suffering of citizens and businesses "exposed to high electricity prices". Also in this case, it will be up to the member countries to decide with which measures to redistribute the resources deriving from the extra profits.

Finally, the EU states will also have to introduce a temporary solidarity contribution for the fossil fuel industry, “on the basis of the taxable profit realized in the fiscal year 2022”. The Commission's proposals will pass directly to the States – as provided for by article 122 -, which will be able to amend them and, if necessary, approve them by qualified majority.

And the price cap?

Europe is moving towards the introduction of the gas price cap, strongly supported by our country. "Already yesterday there was a call for a first group of experts, including an Italian" said the Minister of Ecological Transition, Roberto Cingolani on Radio 24, explaining that the mandate has been given "for September" to study the price cap and that "in the space of two weeks" there will be the first indications. "For the decision - he added - unanimity is not needed, we go by qualified majority".

Cingolani: "Gas at a controlled price for companies"

The Italian government is working on a measure to give a certain amount of gas at a controlled price to companies who are suffering. "The provision should arrive next week", the minister told Radio 24, adding that "the operators who make this gas available are not non-profit organizations, they are companies listed on the Stock Exchange, they cannot be asked to give the gas to the State to be given at a discounted price, there are investors to whom they have to explain the operation”.

The minister then went on to say that with renewables "we won't be able to keep Europe's second largest manufacturing going forever: the only alternative with the exit from carbon and from the gas is the nuclear“. Cingolani also explained that accelerating renewables is fundamental "but you need to have something else, continuous and programmable sources". “We must – he maintains – get out of coal and gas because they produce CO2, the only alternative is nuclear power. Then I say technically, new generation, not the old plants. If we don't make this technological and ideal choice, we will never be able to unlock ourselves. There is an ideological wall that is to the detriment of our children. We are blocking the future of our children with today's ideologies and this is not good,” concluded the minister.

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