Politico has learned the details of the EC plan to combat the energy crisis
Politico: European Commission President Ursula von der Leyen proposes five measures to combat the energy crisis The plan includes five measures, including a ceiling on Russian gas prices, taxes on companies using fossil fuels, support for utilities, and limiting the income of low-cost electricity producers
European Commission President Ursula von der Leyen proposed five measures to overcome the difficult energy situation in Europe, Politico reports, citing six diplomats.
Among the proposed measures— setting a price limit for Russian gas. Earlier, the newspaper wrote that the EC had proposed capping gas prices to €50 per megawatt-hour, warning that the European Union must be prepared to cut off fuel supplies from Russia in response to these actions.
According to Politico sources, the authorities of the EU countries disagreed on this issue: Hungary, Slovakia and at least two other countries did not support the initiative, Germany said it was “skeptical” refers to this idea, while a number of other states, including Poland and Italy, have come out in favor of price caps on all gas imported into the EU.
Von der Leyen said that the EC is considering such a scenario, but so far does not support it, since it is much more difficult to implement this idea than limiting prices only for Russian gas.
Another measure— the idea of reducing the demand for electricity— received generally positively, but while von der Leyen's proposal calls for mandatory cuts, countries including Bulgaria, Hungary, Greece and Poland want them to be voluntary.
Among Other steps suggested by von der Leyen were:
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solidarity tax for high profit fossil fuel companies;
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support for utility companies, including lending to them to place the funds necessary for trading on energy exchanges;
- Limiting the income of non-importing companies that produce electricity from low-cost sources (so-called infra-marginal producers).
The latter proposal was well received, although the representatives of the EU countries would like to have guarantees that the income from such taxes will remain in the right country. “Clarifying the details will be important as power plants that are paid to turn on or off as needed to balance the grid often do so at the request of utilities across a national border,” writes the newspaper.
An emergency meeting of EU energy ministers will be held in Brussels on Friday. European Energy Commissioner Kadri Simson told The Associated Press that the package is expected to be adopted next Wednesday, September 14.
Russian President Vladimir Putin said on September 7 that Moscow would not supply energy to countries whose authorities make political decisions that are contrary to the terms of contracts for the supply of oil or gas. “We will not supply anything outside the scope of contracts. We will not do anything forced. And we will only have one— how to say in a well-known Russian fairy tale: “Freeze, freeze, wolf tail”, — said Putin during the plenary session of the Eastern Economic Forum.
