Overlaying a ceiling on its prices natural gas and suspension of derivatives trading energy are among the candidate measures to be considered on Friday energy ministers, in the context of the EU’s efforts for a coordinated and collective response to the energy crisis. The Czech Republic, which holds the EU Presidency, is expected to present these ideas, among others, as part of a list of emergency measures to be discussed on Friday. These also include the temporary imposition of a cap on the price of natural gas when it is used for energy production, the price of gas imported from Russia but also the opening of a pan-European emergency credit line to support market participants. However, an assessment is expected at the same time on how the EU could use the carbon market to keep its prices down. electricity. In a related working paper, the Czech Presidency emphasizes that intervention in the energy market should be designed in such a way as to prevent an increase in gas consumption or undermine efforts to reduce gas demand.

European leaders have struggled for months to find a way to offset the devastating impact of cuts in gas supplies from Moscow, which they described as “turning energy into a weapon of war”. However, from the moment Moscow closed it Nord Stream 1 for an indefinite period of time, their concern turned into anxiety and increased the sense of urgency. So Friday’s meeting is part of the EU effort. to prevent it from being converted energy crisis in the total destruction of the economy and society, but also in a financial disaster. The Scandinavian countries rushed over the weekend to provide massive liquidity to utilities facing high energy costs, even talking about the risk of a crisis, Lehman Brothers style.

The proposals submitted by the Czech Presidency will complement the measures proposed commission and leaked to Bloomberg last week. These include reducing energy demand and consumption and imposing price caps on renewable energy, nuclear energy and coal. They also provide for the confiscation of excess profits from energy companies so that governments can use them to provide subsidies and general measures to support households and businesses.

France and Germany have agreed to exchange electricity and natural gas in the event of an aggravation of the crisis in winter.

Yesterday, through the mouth of the President, France advocated the introduction of a tax on excess profits of energy companies Emmanuel Macron. Thus, France was the latest in a number of member countries supporting the approach taken by the Greek government. “We support a European mechanism that will use the excess profits of those European energy companies that have lower operating and production costs,” Mr. Macron said after a teleconference with German Chancellor Olaf Scholz. He also added that he agreed with the proposal to jointly purchase gas with other EU countries, the purpose of which is to pay the EU as a whole a lower price.

The two leaders also agreed that Europe’s two largest economies would stand by each other in the event of a shortage in the energy sector due to the war in Ukraine and would exchange natural gas and electricity if and when needed. The French president promised that France would offer more natural gas to Germany, which in turn could offer more electricity if the crisis deepened over the winter. As the French president noted, “Germany needs our natural gas, and we need energy from the rest of Europe, mainly from Germany.” He also added that the EU electricity market should be reformed in the medium term. ensure that market prices are in line with the actual cost of production.

Meanwhile, sources close to the German energy system, who asked not to be named, told Bloomberg yesterday that Germany is unlikely to meet its goal of filling 95 percent of gas storage capacity by early November due to the complete shutdown of the Nord Stream 1 gas pipeline. . Even as Europe’s largest economy has stepped up its efforts to build up the necessary stocks for the winter, cutting off supplies from the pipeline is critical. In this case, the situation for the steam engine of the European economy will be difficult, given that Klaus Müller, the head of Germany’s power grid regulator, said a few days ago that even if it fully reaches its filling targets, the reserves will only be enough for two to two and a half months if the supply of Russian gas stops.