The two models of the South that are already being successfully applied are the Greek and the Iberian.as well as the Greek proposal presented in July to the Council of Energy Ministers Kostas SkrekasThe Commission is considering in the context of formulating proposals for a common European response to the energy crisis.

For the first time in a long and deep tension energy crisis, E.E. appears open to considering all available options for price reductions, removing the protection of its marginal pricing model. electricity market which generously provided during the previous period, supporting the countries of the North in defiance of the demands of the South for structural changes.

Greek model

According to a Commission document cited by Reuters, the EU, as a measure of direct intervention, it is exploring the Greek model, which it envisions ceiling for a technology for generating electricity, in which producers are reimbursed for their costs, and the difference from the marginal price, determined each time by expensive natural gas, is collected by the state and sent through Energy Transition Fund (ETF) in electricity subsidies.

“The intervention will introduce a price cap for electricity generation technologies that have lower operating costs (including lignite, renewables, etc.) than gas-fired power plants,” the document says. The aim of the intervention, the document adds, is to decouple the commercial profit of the power generation in question from the current electricity price, which has risen sharply as a result of the natural gas price spike. Price caps on certain technologies could generate financial resources for states, which could then be used by governments by imposing measures to cap retail energy prices for consumers.

The memorandum, according to Reuters, “presents the first set of measures to streamline European electricity markets and reduce the impact of natural gas prices on prices paid by consumers.”

Iberian model

For the first time, the EU appears open to considering all available options for price reductions.

At the heart of the discussions, according to factors with knowledge of the negotiations, is the Iberian model, which provides for the establishment of a ceiling on its price. natural gas used to generate electricity. The difference with the import price is covered by a special fee levied on consumers. The cost of compensating for the difference between the ceiling and the price of imports is a concern for both the EU and the EU. as well as many Member States. Both models, however, can be implemented immediately and produce results within a month, so they are eagerly considered by the Commission.

And a Greek sentence

In terms of structural changes, Greece’s proposal, presented in July to the Council of Energy Ministers by Minister Kostas Skrekas, seems to be gaining ground and has since been met with skepticism from the President of the Commission and discredited by some member states of the North. such as Luxembourg and Denmark. The proposal provides for the creation of two separate electricity markets, one for energy generated fossil fuels (natural gas, coal, lignite) and one from RES, nuclear, hydro, etc., with the energy billed at the weighted average price to be received, rather than the most expensive one currently in use.

In addition to these three models, EE has opened up the full range of offerings that have been submitted over the past six months. The mobility of negotiators at all levels is increasing, proposals are flowing in, and as we approach the emergency situation, the situation is becoming clearer. Council of Energy Ministers dated 9 September and the announcement of the EE by President Ursula von der Leyen on 14 September. The proposals are described as an early evaluation of options for EU initiatives, according to the document cited by Reuters. not as a formal political proposal.

“Cutter” 15%

The question that has also begun to be debated, according to those familiar with the talks, is whether the conditions that prevail in Europe with astronomical energy prices justify activating a mandatory 15% reduction in natural gas consumption. According to a July decision by the European Commission, the 15% limit could become mandatory either by decision of the European Council or at the request of the five member states, which will be on high alert.

For the first time, the discussion includes a reduction in electricity consumption under the norms of the decision on natural gas in a percentage that has yet to be determined. The Commission document cited by Reuters also talks about measures to reduce demand for electricity.