Emergency measures to reduce prices Current prepared European Unionas announced Ursula von der Leyen.

“Electricity prices are currently, for various reasons, revealing the limitations of the current structure of the electricity market,” the President of the European Commission said today in the context of the Bled Strategic Summit in Slovenia.

This plan “was developed in a completely different environment and with completely different goals”, she stressed and added that “for this reason, we are now preparing an extraordinary intervention and structural reforms in the electricity market.”

Soaring electricity prices are currently exposing the limitations of our current market arrangement.

It was designed for different circumstances.

That is why we are now working on emergency intervention and structural reform of the electricity market. pic.twitter.com/8f8FYZXCit

— Ursula von der Leyen (@vonderleyen) August 29, 2022

Clear EU intervention measures are still under discussion, according to Bloomberg. However, they may be announced in the coming days, possibly before the end of the week.

Unprecedented increases in energy prices have fueled inflation and dramatically increased the financial burden on businesses and households still struggling to recover from the pandemic.

Extraordinary meeting of the Ministry of Energy

It is noted that recently the Czech Republic, which presides over the European Union in turn this half of the year, convened an extraordinary meeting of EU energy ministers. September 9, according to the Minister of Industry of the Czech Republic, Josef Schikela, against the backdrop of a sharp rise in prices for natural gas and electricity.

After a busy weekend of negotiations, I can announce that I am convening an extraordinary meeting of the Energy Council. We will meet in Brussels on September 9th.

We must put the energy market in order. An EU level solution is by far the best we have. pic.twitter.com/tsOzOSHpx0

— Jozef Sikela (@JozefSikela) August 29, 2022

The Czech Minister of Industry noted that the price of natural gas should be decoupled from the price of electricity, while stressing that one of the proposals includes setting a ceiling on the price of gas used to generate electricity.

Last week, Czech Prime Minister Petr Fiala called for a meeting, while the industry minister said the European Energy Council should be convened as soon as possible, adding that “we are in an energy war with Russia and this is hurting the whole EU.”

New negative entry

In addition, a new negative record was recorded today in the energy market, as electricity in Germany broke the €1,000 “barrier” for the first time in 2023. The price of next year’s electricity in Germany, used as a benchmark for Europe, rose 6.6% earlier in the day to €1,050 per MWh.

This was preceded by a jump in prices of more than 25% on Friday in Germany and France, as Russia limits the supply of natural gas. France also has to deal with the additional problem of declining nuclear power production.

It is noted that the corresponding contract in France on Friday has already overcome the barrier of 1,000 euros.

With information from moneyreview.grbloomberg