The European Commission (EC) will suggest to impose the necessary ceilings, especially on gas, introduced the president of the EC, Ursula von der Leyen. “We have to slice the revenues of Russia, with which Putin is financing his brutal war versus Ukraine,” von der Leyen instructed reporters in Brussels.
“We are facing an emergency scenario as Russia is an unreliable provider and is manipulating our energy marketplaces. Our unity and solidarity will make certain that we prevail. We have elevated our preparedness and weakened Russia’s influence on the vitality provide. minimizing need, permitting the general shares in our gas depots to get to 82%, “explained the head of the European Fee.
“Thanks to diversification, we have elevated provides of liquefied normal fuel (LNG) or gasoline pipelines from the United States, Norway, Algeria, Azerbaijan and other individuals. For example, Norway now provides far more gas to the EU than Russia. We are earning massive investments. in regional renewable vitality resources through the RePowerEU initiative, “included Von der Leyen.
However, we also see the manipulation of the gas marketplaces impacting the energy sector. We are facing astronomical electricity rates for homes and enterprises and great industry volatility. That is why we will propose a sequence of instant actions that will secure susceptible people and firms and assistance them adapt, introduced the President of the EC.
Here are some of them:
“First, ‘Smart Electric power Savings’. What has changed is that the world’s vitality provide is scarce. A fair reduction in demand is needed. A system is necessary to sleek out the peaks in intake that have an affect on the selling price of electricity. We will “We will propose a mandatory target to lessen electricity usage throughout peak hrs. We will function intently with Member States to realize this “, reported the EC President.
“Next, we will present a earnings cap to minimal-value ability generation companies. Lower-carbon energy resources produce unanticipated gains that do not reflect their generation expenses. Now is the time for buyers to enjoy the advantages. profit from minimal-cost, reduced-carbon electrical power sources this kind of as renewables. We will as a result suggest that these unpredicted gains be redirected to assistance susceptible people and businesses adapt, “included Von der Leyen
“Third, the similar really should utilize to the unpredicted profits of the fossil fuel firms. The oil and gasoline organizations have also manufactured huge revenue. That is why we will give a solidarity contribution to the fossil fuel firms. Because all electricity sources. they will have to enable cope with this crisis. Member States should really make investments this earnings to help susceptible people and spend in their individual resources of clean electrical power, “mentioned the head of the European Commission.
“Fourth, energy company corporations require to be supported to cope with marketplace volatility. They are at the moment expected to deliver unexpectedly substantial quantities of funds, which threatens their capability to trade and the steadiness of long run markets. This will assistance to aid Member State liquidity aid for strength organizations. We will update our interim framework to allow for for the fast provision of point out ensures, “additional Von der Leyen.
“And fifth, we will suggest a cost cap for Russian fuel. The objective below is really very clear. We will need to reduce Russia’s revenues that Putin is employing to finance this brutal war towards Ukraine. And now our operate is paying off. its fruits. At the starting of the war the Russian pipeline was 40% of all imported fuel. Now it is only 9% of our imports. These are difficult occasions. On the other hand, I am certain that Europeans have the financial energy, the political will and unity to manage their leading purpose, “said the EC president.
European electrical power selling prices are generally established by individuals of fuel plants and the cap would aim to lower the price of electrical energy produced by wind farms, nuclear electric power vegetation and coal vegetation, which have decreased operating prices because they are not uncovered to electrical energy. soaring gasoline costs.
EU energy ministers will explore the proposals at an emergency assembly on Friday.
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