This is how Europe crashes on the roof at the price of gas (not just Russian)
What has not decided the European Council of Energy Ministers on the roof on the price of gas
Europe crushed on the roof at the price of gas.
“The price cap will be fixed only for Russian supplies. Which, as known, have been absent for a few weeks or have been heavily narrowed. So it will be like putting the roof on a non-existent building. The outcome of the European Council of Energy Ministers which met yesterday in Brussels is summarized as follows ", wrote the newspaper Repubblica today in a correspondence from Brussels.
Certainly in the proposals of the "European executive" there will also be some emergency measures: from the tax on extra-profits (Italian model) to an initial form of separation in the bill of the costs of electricity produced by gas compared to that generated by other sources, from aid for companies in particular difficulty up to a further reduction in consumption, although it is not yet clear whether it will be voluntary or mandatory, “but certainly everything appears reduced by the fact that the“ ceiling ”on the price of methane arrives with a guilty delay. And above all, it will not cover all supplies. Next Tuesday then the Commission will finalize its project ”, said Repubblica .
Corriere della Sera summarized: "The" urgent and temporary "measures that the EU Commission must propose by mid-September at the request of the Energy Ministers of the 27 Member States, at the end of the extraordinary Council, must also include" a price ceiling of gas ". The formula used does not specify more, but the measure that until Thursday seemed not to garner sufficient consensus among governments yesterday turned out to be "the prevailing opinion", as explained by the Czech Minister of Industry Jozef Síkela (Prague has the rotating presidency of the EU) ".
Five countries (in particular Hungary, the Czech Republic and Slovakia totally dependent on the energy of Moscow and the Netherlands which shared the same doubts without putting them in the minutes) have declared themselves openly against the Russian supply cap, but in the end this measure did not it will require unanimity, according to European experts: a qualified majority will suffice. The problem, if anything, is that notes risk being useless. Russian gas no longer reaches European depots and therefore the impact will be minimal.
The idea of the Italian government to extend the “cap” to all gas was, on the other hand, substantially rejected. Minister Cingolani has not lost his optimism, however: "All member countries have pronounced themselves, with slight distinctions, in favor of the Commission's proposals, and therefore a full mandate has been given to move forward," he said yesterday in Brussels. Minister for Ecological Transition Roberto Cingolani, speaking to the press at the end of the extraordinary meeting of the EU Council of Energy Ministers. The Council discussed the five measures still informally proposed by the Commission against the sharp increases in gas and electricity prices, mainly caused by Russia's manipulation of the market.
The minister reported that this broad consensus of ministers was mainly on four of the five proposals, or "all the part concerning the recovery of intra-marginal income" beyond a maximum threshold that will be decided (as regards renewable sources and nuclear power), “the solidarity contributions that we have called the extra profit tax” for fossil fuel operators, “intelligent energy saving, and finally liquidity to help operators in the sector”.
The fifth proposal was that of the “price cap”, the ceiling on the price of Russian gas. “We – Cingolani reported – have greatly relaunched the 'price cap' solution, and the result was, I believe, positive. I have calmly followed the speeches of the ministers: 15 countries have clearly pronounced themselves in favor of a generalized 'price cap', for any import of gas and not only for that from Russia ”.
"There were three – continued the minister – who would prefer the price cap only on Russian gas, and three other countries that have no prejudices on the price cap, but would like it after having carried out checks, for example of long-term economic sustainability. term "or on condition" that some weaker country does not get in trouble, and this is a reasonable opening ". "Then there are – he added – five countries that are against it, or that have remained neutral, in the sense that, not having a great need for gas, for example because they have LNG or because they are isolated, they have not expressed a position".
“Then everyone said that there is no time to waste, because actually the costs that energy has reached are too high. In short – underlined Cingolani -, there is a very strong majority, and we pointed out to the presidency (on duty of the EU Council, ed) that this is a very clear scenario, and we asked that a mandate be given to work as soon as possible. to this scenario. And I believe that the Commission will work on these proposals next week ”.
The minister then also mentioned "another fundamental point discussed by all, the decoupling of electricity from the price of gas", in the structure of the European wholesale electricity market. A reform that the Commission has undertaken to present this autumn.
As for Germany's position, Cingolani reported that the German Economy Minister, Robert Habeck “made a beautiful speech; he said they have no prejudice on the price cap. The only thing ", objected Habeck according to the Italian minister" is that for some countries of the South-East it could be a bit complicated; therefore it will be necessary to verify that this thing is sustainable ”.
In fact, Cingolani pointed out, "there are two countries that have a specific problem. But even with these countries I can guarantee that the climate has been very constructive". And these two Member States, he concluded, "are geographically adjacent to the eastern border" of the EU (probably Hungary and Slovakia).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/ecco-come-leuropa-si-spappola-sul-tetto-al-prezzo-del-gas-non-solo-russo/ on Sat, 10 Sep 2022 06:24:04 +0000.