Energy saving measures taken by Germany, France and Italy

Faced with rising energy prices, EU countries are taking measures to relieve citizens.

At the same time, at the European level, the decisions of the extraordinary meeting of energy ministers on September 9 are expected, as well as the statements of the EU president Ursula von der Leyen on 14 September regarding the European Commission’s proposals to impose a ceiling on energy prices.

During the extraordinary session, proposals will be considered, such as imposing a ceiling on the price of gas used to produce electricity or interventions to prevent market malfunctions, as Czech Industry Minister Jozef Šikela explained earlier this week, stressing that “the solution at EU level is by far the best we have.”

ITALY

Italy is trying to deal with the ongoing increases in the energy sector with a series of measures.

Since the beginning of the year, the government of Italian Prime Minister Mario Draghi has approved emergency aid for the country’s households and businesses, totaling fifty billion euros. Among other things, he reduced state fuel taxes by thirty cents per liter, approved tax refunds for businesses that consume a large amount of natural gas, as well as the reduction of VAT to 5% for gas and electricity bills sent to thirty million households and six million commercial enterprises.

At the same time, the Draghi government made a great effort with the aim of taxing the surplus profits of energy companies. At the moment, however, out of a total of debts to the public which was estimated to reach ten billion euros, only one billion has been paid to the state coffers.

As for the future, Italy is preparing to approve new support measures, which are expected to reach around ten billion euros. However, the Italian prime minister and former president of the ECB wants to avoid – at all costs – the increase in the public deficit, and for this reason the final “green light” on the package of measures for the relief of citizens and businesses has been delayed.

As far as energy saving is concerned, for now, the new rules only concern buildings belonging to the Italian public: it is stipulated that the temperature of the air conditioner cannot be lower than twenty-five degrees and of the radiator higher than twenty-one. There is, of course, a “margin of tolerance” of two degrees.

According to the statements of the Minister of Energy Roberto Cingolani, a new government decree will be approved in the coming days, which will concern the private sector and private homes. All indications are that it will be imposed to reduce the operation of the radiator by one hour per day, while lowering the temperature by one degree. In the warmer areas of the hour (ie the south) these restrictions are likely to be greater.

As for initiatives at the European level and the meeting of energy ministers on September 9, the Draghi government continues to insist on the approval of a European ceiling on the price of natural gas. The Italian technocrat prime minister has emphatically emphasized, after all, that any misgivings in this whole issue harm Europe and favor Vladimir Putin.

FRANCE

With French President Emmanuel Macron already declaring “the end of affluence and carelessness”, France is preparing for what will undoubtedly be a “difficult” winter, with no one yet able to predict the extent of the difficulties.

The only thing that is certain is that the French nuclear reactors will work “at full capacity” from now on. Except that this concerns half of those that exist in the country, since the other half are out of operation for maintenance reasons.

What is also certain is that coal-fired power generation will increase, which will more or less happen in most European countries, despite existing agreements to deal with climate change.

A first assessment of the difficulties that will arise with the arrival of winter was attempted on Friday in Paris, where Macron convened the so-called Defense Council to deal with the energy crisis.

The worst of the scenarios discussed, that of a complete cut-off of Russian gas combined with a severe winter with low temperatures, does not even rule out the interruption of electricity supply to households for a few hours a day. The relevant ministers argue that this will probably be avoided, without, however, assuaging the reasonable concerns of the average Frenchman.

As far as energy-intensive industries are concerned, however, it is considered rather certain that this winter they will work “idle”, while as far as households are concerned, it is also certain that many will still receive financial support in 2023 to face the increase in energy prices.

From Europe, France expects concrete decisions from the Council of EU Energy Ministers that will take place on September 9. Its aim is to set a pan-European ceiling on natural gas prices, something that has so far been out of the question and a taboo for Europe. But times are changing, argues Paris.

GERMANY

The public, businesses, shops and consumers are invited to contribute to the effort to save energy and especially natural gas, which must reach 20%, in order to prevent the risk of a ticket being imposed.

As of September 1 and for six months, the first measures have already been implemented:

In public buildings, the maximum temperature is set at 19 degrees, while the heating of corridors and stairwells and the hot water in the toilets are abolished. Where manual work is performed, the maximum temperature is limited to 12 degrees. Hospitals, schools, kindergartens are excluded from the restrictions.

Monuments and public buildings will no longer be illuminated at night and certainly not solely for aesthetic reasons. In addition, the lights on advertising signs will be turned off each night at 10:00 p.m. Street lights, however, remain on, as do shop windows, if the owner so desires.

As long as the temperatures are still high, the doors of air-conditioned shops should remain closed.

On private grounds, pools may not be heated with gas or electricity. Some municipalities are even going even further, completely eliminating hot water in showers at public swimming pools and gyms.

The first measures are estimated to bring savings of around 2%, while a second set of more long-term measures will follow in October, such as the obligation to check the central heating system every two years.

Meanwhile, technicians are booked through the end of the year and sales of firewood and electric heaters have soared. At the same time, the electricity companies are carrying out “durability tests”, the outcome of which will determine the possible extension of the operation of Germany’s three nuclear plants, which were to be closed permanently at the end of the year.

At the same time, dramatic recommendations to citizens to limit household consumption are intensifying and some real estate companies are imposing temperature restrictions at night.

From October 1st, the introduction of the special natural gas tax, amounting to 2.419 cents/kWh, is expected, with the aim of stabilizing the energy market and saving the providers, who will now pass on to consumers 90% of the additional cost of energy supply. Already the federal state has responded to Uniper’s request for emergency support, promising at the same time “huge targeted and precise” relief for citizens, as part of a €30 billion aid package.

Ahead of the emergency EU meeting, Germany, fearing social unrest, is now also leaving open the debate on imposing a ceiling on the maximum price of natural gas.

AUSTRIA

The Austrian federal government and the city of Vienna agreed a few days ago to rescue, with a credit line of at least 2 billion euros until April, the country’s largest energy provider, Wien Energie, in order not to disrupt the energy security of around 2 million inhabitants of the capital.

But the city has now announced that it will keep its famous Christmas lanterns in the historic center off, while outdoor Christmas markets will be lit an hour later than last year.

The country’s large factories should be prepared to operate with oil if necessary, while shops are already limiting their external lighting and ski resorts are planning to limit the operation of lifts. At present, however, private household saving is mainly done on a voluntary basis.

The government, previously cautious about possible interventions in the energy market, has now moved spectacularly: “We must finally put an end to the madness of the energy markets. These markets, in their current form, will not self-regulate. I call on the EU-27 to stand united in trying to stop the price explosion immediately,” said Chancellor Karl Nehammer ahead of the September 9 summit.

The decisions of the meeting will largely judge government policy, with the Natural Gas Control Ordinance still being processed. There is also a delay in the discussion on reactivating the Melach power plant with lignite instead of natural gas.

BELGIUM

The reduction of VAT on energy to 6% on a permanent basis was decided last week by the Belgian government, in order to deflate the bills of consumers and businesses. This measure was initially adopted on a temporary basis in March 2022.

At the same time, the Belgian government is encouraging citizens to pay attention to energy consumption, which has already decreased between 10-15% compared to last year. “The energy you don’t use is clearly the cheapest. If we all make an effort together, prices will fall,” said Belgian Prime Minister Alexandre de Croix.

The federal government will meet in the coming days with the employers’ and self-employed’s federations and with representatives of sectors particularly affected by the energy crisis, in order to consider support measures.

The Belgian press comments that the government’s possibilities to lower prices are limited and that the country is relying on a European intervention, pending the Energy Council on September 9.

“The state does not have unlimited pockets”, has declared the Belgian prime minister, who, at every opportunity, repeats his expectation for action at the European level. “The solution will only come from international intervention in the electricity and natural gas markets,” he has pointed out.

Belgium’s Flemish liberal prime minister has come out in favor of imposing a European cap on gas and electricity prices. He has even expressed his government’s intention to proceed with a national ceiling on energy prices, in the event that a European one is not imposed, although he admits that this would be less effective.

At the same time, the Belgian prime minister as well as several parties in the country are calling for a “European framework” that would allow the recovery of “the extraordinary surplus profits” of the energy sector, through taxation.

Energy Minister Tin van de Strate said that, according to the Belgian Electricity and Gas Regulatory Commission (Creg), the amount of excess profits of Engie Electrabel through its nuclear reactors that are not subject to extension is estimated at 2 billion euros . The minister estimated that around 700 million euros could be recovered from the surplus profits linked to the crisis.

RES-EMP

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