Already at the technocratic level, the pros and cons of the alternative solutions that are on the table to limit the effects of the energy crisis on consumers are being examined. The EU energy ministers meet on Friday.
Its Greek model imposing a ceiling on compensation prices for power producers, which has been in place since last July, is at the heart of EU-level consultations to finalize the measures to be presented by Commission in the direction of reducing energy costs.
Already at the technocratic level, the pros and cons of the alternative solutions on the table to limit the effects of the energy crisis on consumers are being considered, ahead of the meeting of Energy Council tnext Friday, September 9.
At the same time, the president of the European Commission Ursula von der Leyen – who is expected to outline the solutions ahead of her in a speech on September 12 – on Friday came out in favor of imposing a cap on the price of Russian gas imported via pipelines to the EU.
Main advantage of the ceiling in the compensation prices of electricity producers is on the one hand that it can be applied directly and on the other hand that it cancels in practice the impact of natural gas prices on the cost of purchasing electricity produced by other sources (coal, nuclear, hydroelectric, RES, etc.). The reason is that these units will not collect the price set by the most expensive unit, which is required to cover the demand (as defined by the market model – target model – provided for in the current Community framework) but the administratively determined price – ceiling. With the current conditions, natural gas units are more expensive, the high cost of which is thus transferred to the whole of power generation technologies.
According to competent sources, the adoption of the measure should be accompanied by abolition of taxation of excess profits (windfall profits) of electricity producers that have been adopted by many European countries (and Greece with a rate of 90%).
It is noted that our country had already proceeded from last year to the immediate recovery of the excess revenues of Renewable Energy Sources, while from July the model was extended to all power generation units.
Also on the table is the imposition of a ceiling on the price of natural gas intended for power generation which, as pointed out, should be accompanied by strong energy saving measures, otherwise it will lead to an increase in natural gas consumption (after the price is reduced). Which is undesirable especially at this time. It is noted that this option (it is the solution applied in Spain and Portugal) also includes compensation to the power producers for the difference in the actual purchase price of the fuel, from the ceiling.
On the other hand, if the cap is imposed on the import price of natural gas, it should to ensure the adequacy of supply. Russia has already spoken of a supply cut if the ceiling is imposed on Russian gas.
The Greek government through the Prime Minister Mr. Kyriakou Mitsotakis with a letter to the president of the European Commission last March but also with interventions by the Minister of Environment and Energy Mr. Kostas Skrekas to his counterparts in the Councils of Ministers of Energy he has repeatedly pointed out the need to act at the European level to curb the effects of energy crisis.
RES-EMP
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