The European Commission will propose a set of five “immediate effect” measures to curb the impact of the energy crisis in Europe. In a press conference this Wednesday, Ursula von der Leyen said that a mandatory target will be proposed to reduce electricity consumption in peak hours. “Intelligent electricity saving”, as the president of the European Commission called it. “We will work closely with the member states to achieve this,” she assured.
A ceiling will also be proposed for the profits of companies that produce electricity at reduced prices, that is, renewables. According to the Financial Times, this ceiling will be 200 euros per MWh. “Companies are making big profits despite low expenses, due to high market prices,” he noted. “These gains do not reflect their costs and the time has come for consumers to benefit from these low costs.” These profits will be “redirected to member states.”
Von der Leyen also revealed that a solidarity contribution will be proposed to oil and gas companies, which will also benefit from significant gains due to the market context, “because all energy sources must contribute to overcoming this crisis.” Here, too, member states must invest this money in supporting the most vulnerable families and in renewable energy sources, he declared.
The fourth proposal is to try to guarantee aid to energy companies that are experiencing difficulties due to market volatility. It is about “ensuring the future of the markets and liquidity needs”.
The fifth measure is to create a ceiling on the price to be paid for Russian gas. “We know that our sanctions are having a negative impact on the Russian economy, but Putin is overcoming it in part thanks to the income he earns from fossil fuels. The objective is to cut the income that is used to finance the war in Ukraine.” Von der Leyen recalled that the EU was already 40% dependent on Russian gas, and that this figure now stands at 9%.
The president of the European Commission justified the measures not only with the Russian “manipulation” of the market but also with other factors, such as the effects of climate change and drought, which reduced hydroelectric production. And even he put Portugal as an example. In Europe, production fell 26% and in Portugal 46%, he said. And also keep in mind that nuclear energy production has also decreased.
“Russia is manipulating our energy markets and we are facing astronomical prices,” stressed the president of the European Commission, also accusing Russia of being an “unreliable” energy supplier. “I am convinced that with our determination and solidarity we will get out of this situation,” he declared.
Russia is manipulating our energy markets and we are facing astronomical prices.
Therefore, we will introduce measures to protect vulnerable consumers and businesses.
We have the economic strength, the political will and the drive to maintain the advantage.
https://t.co/ntpzZknBjW– Ursula von der Leyen (@vonderleyen) September 7, 2022
Von der Leyen recalled that, so far, Brussels has already taken measures to counter Russian “manipulation”, namely reducing gas demand, diversifying energy sources, in order to reduce Russian dependence, and investment ” mass” in renewable energies, which are Europe’s “energy insurance” in the future.
“These are difficult times that are not going to be overcome soon, but I believe that if we show unity and solidarity, we will have the economic strength and the political will to overcome them.”
Source: Observadora
