BRUSSELS – ANSWER. Yesterday’s meeting ended without surprises Brussels deal with high energy prices, and European energy ministers agreed on the weaknesses of the Commission’s proposal, but were unable to resolve their differences on the key issue of natural gas limitpromoted by 15 states at the initiative of Greece, Italy, Poland and Belgium.

The Commission’s decision not to include the “15” request in its plans for an upcoming legislative proposal caused great outrage among supporters. Nonetheless Commission insisted on its negative stance, reiterating that restricting natural gas supply posed a big risk to supply and that it was a radical decision that would lead to widespread intervention in the natural gas market, which would require lengthy preparations and reduce demand for gas. of natural gas by Member States far more than the 15% they have already agreed upon. Instead, he advocated cutting consumption and renegotiating negotiations with reliable supply partners such as Norway and Algeria to achieve lower import prices.

“We had an honest discussion and there are different points of view, but there are also points of convergence,” Country Energy Commissioner Simpson said at a press conference after the council closed. “A ceiling on wholesale natural gas prices is a legitimate proposal, but it requires serious intervention,” he added. “We have requested additional information from Member States and expressed our intention to impose a limit on natural gas used for electricity generation,” he concluded.

Germany, the Netherlands and Denmark continue to oppose the restriction – Strong discontent on the “15” front.

At the same time, Germany, the Netherlands and Denmark continue to oppose the restriction of natural gas supplies, as they argue, this could jeopardize the security of energy supply and the prospects of the EU. to attract natural gas imports for the winter. Prior to the meeting, the energy ministers of Greece, Belgium, Poland, Italy, Spain, Germany, the Netherlands and France held an informal meeting in an attempt to resolve differences, according to diplomatic sources.

What’s more, while Germany has blocked pan-European solutions that would lower energy costs, Berlin moved to take action at the national level earlier this week, prompting a backlash. Outgoing Italian Prime Minister Mario Draghi has criticized Berlin’s decision to cap the price of natural gas on the German market by issuing new debt of 200 billion euros.

“We cannot be divided based on the free fiscal space we have, we need solidarity,” Draghi said, according to the Italian news agency ANSA. “No EU member state can provide effective solutions in the long term, acting alone, if we do not have a common strategy, even those that seem less vulnerable from an economic point of view,” he added.

Energy Saving Measures and Surplus Profit Fee

The political agreement between energy ministers to combat the continued rise in energy prices, which will be formally adopted in writing, probably by the end of next week, includes measures to reduce demand for electricity during peak hours, measures to collect excess revenues from electricity generation from renewable sources. and the solidarity contribution from the excess profits of fossil fuel companies, which will be redirected to support consumers and businesses.

In particular, it sets a voluntary target to reduce electricity consumption by 10% and a mandatory target to reduce consumption during peak hours by 5%. It also provides for a ceiling on the income of electricity producers from RES, nuclear energy and lignite at the level of 180 euros/MWh. Finally, a temporary windfall solidarity fee for fossil fuel companies will be charged at a rate of at least 33% of excess taxable profits.

With regard to measures to support small and medium-sized enterprises at retail energy prices, the Council agreed that Member States may temporarily set the price for their electricity supply. They also agreed that they could, as an exception, and temporarily set the price for the supply of electricity below its cost.

It is noted that these measures are temporary and will apply from December 1, 2022 to December 31, 2023. Energy consumption reduction targets will apply until March 31, 2023. Mandatory market revenue cap will apply until June 30, 2023. Member States introduced special exemptions for Cyprus. and Malta.

Consultations are expected to continue next Friday at the meeting of heads of national governments in Prague on 7 October.