The five-point plan, the main “weapon” of which is the price ceiling for Russian natural gas, is recommended by the European Commission for decision energy crisis.
As the head of the Commission, Ursula von der Leyen, officially stated, the five measures that the European Union is called upon to take are as follows:
- Mandatory goal to reduce electricity consumption during peak hours
- Russian natural gas price ceiling
- Restriction for non-gas power generators
- Solidarity Gathering for Fossil Fuel Companies
- Liquidity support for energy companies.
Russia is manipulating our energy markets and we are facing astronomical prices.
Therefore, we will propose measures to protect vulnerable consumers and businesses.
We have the economic power, the political will and the unity to prevail.
https://t.co/ntpzZknBjW— Ursula von der Leyen (@vonderleyen) September 7, 2022
Regarding the third measure (3), according to the Financial Times report from today, the limit will be set at 200 EUR/MWh for electricity from producers other than natural gas (i.e. high price of natural gas).
According to the same document, anything over the limit that is sent to energy companies will be collected by national governments and sent to consumers in the manner each state deems appropriate.
With regard to reducing consumption during peak hours (2), it will be proposed mandatory cap of 5%. It is noted that a common way to apply this measure to industry players is in compensation or a commitment to lower bills in the future.
Recall the energy ministers of the EU countries. are going to hold an extraordinary meeting this Friday to discuss the Commission’s proposal.
Putin threatens to cut off power
Earlier today Russian President Vladimir Putin reiterated its threat that Moscow would completely turn off natural gas and oil if a price cap was imposed on Russian energy.
During a major speech at the Eastern Economic Forum in Vladivostok, Putin called capping the price of Russian gas “stupid,” adding that Russia would waive its supply contracts if the West imposed a price cap on Russian exports.
Moscow will have no problem selling its vast energy resources around the world despite Western sanctions, the Russian president said, arguing that the imposition of the cap would drive up prices and that global demand for Russian energy was strong.
Vladimir Putin has argued that Gazprom is ready to resume gas supplies to the West when Siemens returns the damaged Nord Stream 1 turbine, but that Moscow can also operate Nord Stream, which he says the US is blocking to sell your own. natural gas at higher prices. According to him, Russia does not blackmail energy resources.
Source: Kathimerini
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