European energy ministers reached an agreement on Friday, September 30 on emergency measures to help households and businesses in the European Union (EU) in the face of soaring bills, but many believe that more needs to be done further as winter approaches.
Officials validated proposals presented in mid-September by the European Commission, aimed at recovering part of the “superprofits” energy producers to redistribute it to consumers and to impose a reduction in electricity demand at peak times.
But they are still divided on a cap on the price of gas imports, which comes up against German reluctance in particular. ” There’s no time to lose “ to bring down the price of gas, said Czech Industry Minister Jozef Sikela, whose country holds the EU Council Presidency.
The recent leaks on the Nord Stream 1 and 2 gas pipelines in the Baltic Sea, denounced by the EU as acts of “sabotage”have further increased tension in the European bloc, already shaken by soaring prices linked to the war launched by Russia against Ukraine.
The emergency measures endorsed on Friday set a binding target for states to reduce their electricity consumption “by at least 5%” during peak hours. The Twenty-Seven are also called upon to reduce their monthly electricity consumption by 10%, an indicative objective this time.
“We must act now, not in a month”
Another measure: the ceiling on the income of electricity producers from nuclear and renewable energies (wind, solar, hydroelectric) which reap exceptional profits by selling it at a price much higher than their production costs.
This ceiling is set at 180 euros per megawatt hour and the difference between this level and the wholesale market price must be recovered by the States to be redistributed to households and businesses. A “temporary solidarity contribution” also applies to producers and distributors of gas, coal and oil. In total, revenues of around 140 billion euros could thus be donated, according to the President of the European Commission, Ursula von der Leyen.
But a majority of Member States – fifteen, including France, Belgium, Italy and Spain – consider that the problem still needs to be tackled. “most serious problem” : they are calling for a cap on wholesale gas prices on the European market.
These countries want the measure to apply to all gas imports, not just those from Russia. For the Czech Minister, the Commission must act quickly:
“We are in an energy war with Russia, winter is coming and we have to act now (…), not in a month. »
“We have to conclude more quickly”
The Community executive, like Germany, is reluctant to implement such a measure, fearing that a price limitation will threaten European supplies by dissuading “reliable partners” such as Norway or the United States to deliver gas to the EU for the benefit of other destinations. Estonian Economy and Infrastructure Minister Riina Sikkut also spoke out against the idea, saying “Gas availability and security of supply were more important than price”.
In a preparatory document, the Commission has proposed setting a maximum price for Russian gas – whether transported by pipeline or as liquefied natural gas (LNG) – which currently accounts for 9% of European imports. . Russia was historically the leading supplier of the EU, transporting more than 40% of the gas consumed on its territory.
To lower prices, Brussels is counting on negotiations with other suppliers of gas transported by pipeline, but considers that for LNG the ability to negotiate is restricted by international competition. The Commission is also considering capping the price of gas used for electricity generation.
These options are being discussed by the ministers and should give rise to a more detailed plan, before a summit of the leaders of the Twenty-Seven on October 7 in Prague and a new meeting of energy ministers on October 11 and 12. “We must go further on these subjects and we must conclude more quickly”for her part estimated the French Minister of Energy Transition, Agnès Pannier-Runacher.
Many EU countries have already put in place support schemes at national level to relieve households and businesses strangled by bills. Like France, which applies caps to energy prices, Germany announced Thursday that it would release up to 200 billion additional euros to limit gas and electricity prices.