The governments of its member states are largely taken by surprise European Union from the messages of the Chairman of the Commission Ursula von der Leyen to do energy crisisPolitico reports.

Ms von der Leyen yesterday, Wednesday, announced five measures that the European Union is called upon to take:

1. Mandatory goal to reduce electricity consumption during peak hours.
2. Price ceiling for Russian natural gas.
3. Restriction for non-gas power producers.
4. Solidarity gathering for fossil fuel companies.
5. Liquidity support for energy companies.

The European Commission’s proposals are dividing the EU, according to six diplomats cited by Politico, but are expected to give Ms von der Leyen room to maneuver ahead of next week’s address to the nation in the European Union. Moreover, energy prices will be the focus of the meeting of EU energy ministers. Tomorrow is Friday

According to diplomats cited by Politico, the two measures appear to be gaining support from both the Commission and EU countries. First, credit is being given to utilities to respond to current high prices. The second is the taxation of excess profits, although the EU ambassadors wanted guarantees that the income from these taxes would remain available to each country.

The most controversial proposal is a cap on the price of Russian natural gas, largely aimed at financially punishing the Kremlin for the war in Ukraine. European countries have “very conflicting views,” a European diplomat said.

Germany said it was cautious about the idea. At the same time, Hungary – Russia’s closest EU ally – opposes the proposal, as does Slovakia, as well as at least two other countries, according to sources cited by Politico.

Other countries, including Poland and Italy, want the Commission to go even further and limit the price of all natural gas imported into the EU. According to Ms von der Leyen, the Commission has “considered” this issue, but so far Brussels has strongly opposed the idea in its assessments.

While Norway, currently the EU’s largest supplier of natural gas, has left open the possibility of being positive about the cap, the US has more questions amid the November midterm elections. Hungary also wants any energy package to be approved unanimously, rather than through an emergency procedure that requires a majority, as the Commission wants, one of the diplomats said.

The idea of ​​reducing electricity demand is popular, but while von der Leyen’s proposal calls for mandatory cuts, countries like Bulgaria, Hungary, Greece and Poland want such measures to be optional. The commission has not dealt with the issue of unbundling gas and electricity prices, although many countries want this to happen.

Booking Athens

As written in today’s card “K”imposing a ceiling only on Russian gas is not considered satisfactory by the Greek side, which wants it imposing restrictions on TTF and in electricity generation technology prices based on the Greek model, in which generators are reimbursed. According to K’s information, Italy has presented its own proposal, very close to the position of Athens, which provides for a ceiling on the overall price of natural gas and on the TTF market.

Energy market participants note that the restriction of Russian gas supplies will cause European energy companies to terminate their contracts with Gazprom, leading to litigation with an uncertain outcome and potentially serious financial consequences.

In addition, the adoption of a restriction on Russian gas would have to be applied by Greece without fail, which would lead to the cessation of the supply of Russian natural gas to our country through the Turkish Stream pipeline, which is currently operating in the usual mode.

As for the €200 cap, the same sources claim that Greece already has a cap of €112 for hydro and €85 for RES. The universal application of the Commission’s measure will lead to a reduction in the excess profits of producers, which will lead to a subsequent reduction in funds for subsidizing electricity bills.