EU agrees to jointly buy gas — but divided on price caps


Whether or not the EU will act on to restrict gasoline costs with a view to cut back hovering payments for households and enterprise continues to be an open query — as there may be nonetheless no consensus on gas-price caps.

“We have to have swift but in addition efficient options. This isn’t a straightforward topic,” the Czech Republic’s trade minister Jozef Síkela, whose nation holds the EU council presidency, stated on Wednesday (12 October), after internet hosting an off-the-cuff vitality assembly in Prague.

Though no breakthrough was made in talks over worth caps, EU nations reached a common settlement to buy gasoline via a joint platform earlier than subsequent summer season, Sikela stated.

Power ministers mentioned totally different choices to curb excessive costs in a bid to information the European Fee within the design of emergency measures on account of be introduced subsequent week (18 October).

The fee’s proposal will probably be prepared in time for the summit assembly of EU leaders in Brussels on 20 and 21 October — the place vitality points and their affect on Europe’s financial system will probably be excessive on the agenda.

Among the many priorities of the proposal will probably be: joint purchases of gasoline, to keep away from EU nations outbidding one another in world markets forward of subsequent winter, making certain solidarity agreements amongst member states, additional energy-savings targets, and growing a complementary benchmark for gasoline costs.

“We should sort out the costs now,” EU commissioner vitality Kadri Simson stated throughout a press convention alongside Síkela.

“The fee’s choice [to lower prices] has been to do it by way of negotiations with our worldwide companions. However now we have to be prepared if these negotiations aren’t fast sufficient,” Simson stated.

The EU must be prepared to use a short lived mechanism to restrict the costs if negotiations don’t ship in time, she added. The upcoming proposal is anticipated to elucidate how this is able to work in follow.

Non-EU Norway, which stepped in as a serious EU gasoline provider because it minimize provides from Russia, opposes worth caps for gasoline.

“We expect the answer is to construct on the business framework,” stated the nation’s vitality minister, Terje Aasland, who joined EU ministers in Prague stated on Wednesday.

Negotiations with suppliers in Norway and the US to scale back the costs of imported gasoline are seen by many EU nations as a measure which might decrease costs whereas preserving provide.

“That is a logical first step that must be carried out,” Austrian vitality minister Leonore Gewessler stated, forward of the assembly along with her counterparts.

German-Dutch proposal

Till now, some nations have pushed for a broad worth cap on gasoline — whereas others see this as a dangerous transfer that might undermine safety of provide, or inadvertently enhance consumption.

Nonetheless, it’s nonetheless unclear whether or not the proposal of the fee will embody some type of proposal for worth caps.

“Our proposal on 18 October will encompass the sorts of proposals the place now we have most consensual assist,” stated Simson — falling quick to make clear whether or not there may be sufficient assist to place ahead this kind of measure.

In line with the Polish atmosphere minister Adam Guibourgé-Czetwertyński, a bunch of 17 nations is at present in favour of a wholesale gasoline worth cap for each imports and intra-EU gasoline transactions. The checklist consists of Belgium, France, Poland, Portugal, Slovenia, Greece, Italy and Spain.

However Germany, the Netherlands and Hungary are nonetheless cautious of any worth cap.

“We agree on the prognosis. The remedy continues to be beneath dialogue,” stated the Italian minister for ecological transition Roberto Cingolani forward of the assembly.

On Tuesday (11 October), Berlin and Amsterdam put ahead a 10-point proposal presenting emergency measures to sort out the vitality disaster. However each nations voiced scepticism in regards to the concept of capping gasoline costs.

“Measures within the electrical energy sector which could enhance the gasoline demand and focusing on the identical infra-marginal rents ought to be thought-about very rigorously and likewise ought to embody burden-sharing,” reads their doc.

‘Complicated’ debate

“The talk on the cap is a confused one, as a result of there are totally different caps totally different individuals discuss,” stated German minister for local weather motion Sven Giegold, referring to the variations in market dynamics concerning imports of liquified pure gasoline (LNG) and gasoline that comes by way of pipelines.

For LNG, a globally-traded commodity, Germany and others argue {that a} worth cap can be detrimental as suppliers might flip to areas with out worth caps to promote their gasoline. For gasoline by way of pipelines, they argue caps threat undermining market alerts to devour much less and will probably set off an uptick in consumption.

Hungary, for its half, is worried that Russia will fully minimize gasoline provides if a worth cap is launched.

“Russia has made it very clear that in case of an introduction of the value cap on gasoline, they’d minimize the gasoline deliveries … so it is apparent that we’ll not assist [this measure],” Hungarian minister for international affairs Péter Szijjártó stated on Wednesday, forward of the casual vitality council in Prague.

Detailed and in-depth discussions over the fee proposal will happen later this month (25 October) amongst vitality ministers, who’re anticipated to undertake the fee proposal in early November throughout a unprecedented council assembly.

Share post:


More like this

Alfa Romeo’s disappearing logo mystery

The Alfa Romeo System 1 group signed a...

Croatia Returns Migrants To Bosnia Amid Spike In Illegal Border Crossings

Ukraine on March 31 marked one yr since...

Viral snowboarder who was found buried alive in thick snow breaks his silence on dramatic rescue

A snowboarder who went viral after being discovered...