While the battle over gas continues and indeed becomes more bitter, the European energy ministers, meeting today in Brussels, reached a political agreement on measures to mitigate high electricity prices. The measures envisaged include a cut in consumption, the now well-known ceiling on extra profits for electricity producers and the introduction of a solidarity contribution from fossil fuel producers. The result was communicated by the Czech presidency of the EU. As expected, no decision on gas was taken.
Dear energy: the 3 EU countermeasures
Energy ministers have reached agreement on the first package of measures against price increases energy that the European Commission had proposed on 14 September last
Basically there will be three countermeasures put in place at the Community level: one mandatory 5% reduction in electricity demandto be carried out during peak hours in all Member States; a ceiling of 180 euros per MWh on revenues for "infra-marginal" companies, which supply energy from renewable and nuclear sources on the electricity market. Finally, an additional levy of 33% on the extra profits of companies that supply electricity from fossil sources, called "solidarity contribution”. In the latter two cases, the resources collected would be redistributed to the most vulnerable consumers (households and businesses) to offset the price increases.
The clash on the roof over the price of gas
The discussion between the ministers now continues on the other proposals, supported by Italy and 14 other Member States (including France, Spain and Poland) to establish a generalized price ceiling for all gas supplies to the EU, from any source, including those of liquefied natural gas LNG.
After the launch of a 200 billion euro energy plan which made other European leaders turn up their noses, including the Italian premier, Mario Draghi, on the European level the German government continues to block on the generalized gas price cap.
The motivations are not "ideological", explained Berlin, but are based on the desire to "ensure security of supply and with a cap on all imports "there is a high risk that LNG will go to Asia or elsewhere". According to Germany, the risk is that the high energy price will turn into "an even bigger problem", cutting Europe off from supplies. The only solution acceptable to the German government, the same sources underline, is to negotiate directly with suppliers, as proposed to the EU commission in the non-paper published on the eve of the Council of Energy Ministers.
“There has been a lot of talk about a 'price cap' on gas from Russia to Ukraine: it is a penalty. For this I am open, if the countries of South-Eastern Europe do not fear shortages. I said here at the beginning of the crisis that Germany is not ready yet, we need some time. Above all we need to talk to friendly countries, Norway, the United States, Algeria, because prices will be lowered, and there will certainly be a discussion on this today", said German Economy Minister Robert Habeck, this morning, before of the beginning of the Council.
Finally, defending yourself by the accusations rained down on Germany for the launch of the 200 billion maxi plan (financed by debt) announced yesterday, the spokesperson for the Minister of Economy Habeck stated: "Germany introduces a brake on the price of gas and this has nothing to do with the gas price ceiling”. The German government "is ready to collaborate with the governments of partner countries" e the friendship with Italy is deep and so it will remain,” added German Chancellor Olaf Scholz's spokesman.
