The Greek side requested and succeeded in including in the text the provision that allows the calculation of the reduction in natural gas consumption in relation, not to the average of the last five years, but compared to the previous year.
Greece recorded a profit during yesterday’s extraordinary meeting of European energy ministers, after achieving the exemption it requested regarding the reduction of natural gas consumption. At the same time, the proposal of the Prime Minister, Kyriakos Mitsotakis, to disconnect electricity prices from the cost of natural gas was also supported.
With the exception of Hungary, the remaining 26 EU members reached the long-awaited compromise to reduce natural gas consumption by 15% from September to March 2023.
In order to reach this result, it was necessary to adopt a series of exceptions and deviations from the Commission’s original proposal with the countries of the South being in a position of power.
What did Greece achieve?
Greece won the exemption it sought for the calculation of the reduction in natural gas consumption, while at the same meeting Germany, France, Spain, Italy, Romania and Cyprus said they supported Greece’s proposal to start the discussion on a new pan-European model in electricity market.
Ministers agreed on a new regulation to voluntarily reduce the EU’s natural gas consumption by at least 15% compared to the average consumption of the previous five years. In addition, a strengthened EU alert mechanism (EU Alert) was agreed, which could be activated, in the event of a severe gas storage shortage or extremely high gas demand, by establishing a mandatory reduction target of 15%.
THE Greek side requested and succeeded to include in the text the provision that, exceptionally in article 2 and article 5, allows the calculation of the reduction in natural gas consumption in relation, not to the average of the last five years, but compared to previous year.
In addition, Greece, together with Spain, Italy and Portugal, succeeded in including a provision whereby, in the event of an emergency in the electricity generation sector, the quantities of natural gas used by power plants can be excluded from the calculation , critical for system stability.
At the same time, the recital makes a clear reference to the investigation – by the European Commission – of the feasibility of introducing temporary gas price caps, to optimize the operation of the European electricity market, as proposed by the Greek Prime Minister, Kyriakos Mitsotakis, at a previous European Council of Leaders.
Mr. Skrekas pointed out: “Today’s agreement sends a strong and decisive message of unity and solidarity of the EU. against Russian blackmail. Today, we have reached a regulation that examines the particular circumstances of each country and serves the primary objective of the EU, that of reducing dependence on Russian natural gas, in a way that does not endanger social cohesion and productive base of Europe”.
The minister presented the proposal submitted by the Prime Minister, Kyriakos Mitsotakis, to the President of the European Commission for the creation of a voluntary mechanism, through which industrial consumers will be compensated for the reduction in the use of natural gas and electricity.
Mr. Skrekas referred in detail to the innovative mechanism implemented by Greece, for the benefit of the citizens and which binds the excess revenues of the electricity production companies, while he presented the impressive results of the mechanism during the first days of its operation.
The Greek side submitted to the Council of Energy Ministers a proposal for a new pan-European electricity market planning model with the aim of decoupling natural gas prices from electricity prices. By implementing this model, affordable energy prices are ensured for European households and small and medium-sized enterprises. Germany, France, Spain, Italy, Romania and Cyprus supported Greece’s proposal to start the debate on a new pan-European electricity market model.
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