EU faces tough winter – Faced with energy price nightmare European households and businesses – What measures are the 27 considering, according to Reuters
Anxious days in Europe as winter approaches and energy prices put unbearable pressure on European households and businesses. All eyes are on the meeting of energy ministers on Friday, September 9, who will discuss emergency measures to provide a response to soaring gas and electricity prices, following the indefinite shutdown of natural gas flows through of Nord Stream 1.
According to a document seen by Reuters, ministers will discuss options such as a cap on the wholesale price of imported natural gas, a cap on natural gas used to generate electricity or the temporary removal of gas-fired power plants from the current EU system for setting electricity prices.
The same document drawn up by the Czech presidency said ministers would also consider getting an emergency “pan-European support credit line” for energy market participants facing very high margin requirements.
Germany has already announced that will spend 65 billion euros on it third support package to shield households and businesses from the effects of inflation.
In accordance with Reuterson the measures, which include proposals to extend the measure of cheap tickets and for tax breaks amounting to 1.7 billion euros for 9,000 companies in the energy sector, all three parties of the governing coalition under Olaf Solz.
Yesterday a Bloomberg report reported that the application of the energy bill measure for this winter in Europe is starting to look almost inevitable.
TIME: The worst is yet to come – The hardest winter since WWII
To escalate the already deteriorating situation in Europe due to energy crisis says TIME magazine in its online edition
The American magazine emphasizes that “the worst is yet to come” as Europe is far from being ready for the difficult winter.
In fact, he quotes the words of energy expert Llewelyn King who said that for Europe this winter will be the “worst since the end of the Second World War, from 1944 to 1945”.
For the rally in energy prices it summarizes that for natural gas, the cost per 1000 cubic meters in mid-August exceeded $3100, a 610% increase over the same period last year, as measured by the Dutch market TTF.
He continues: “At this price, many power plants cannot afford to run for long. As a consequence of rising fuel input costs, benchmark electricity prices in Europe have risen by almost 300% in 2022, breaking records. Overall, energy prices are ten times higher than the five-year average.”
Especially for the scenario of a complete stoppage of natural gas supply from Russia, the publication states that the consequences will be enormous for Europe and tragic for the global economy. The IMF estimated in mid-July that for Hungary, Slovakia and the Czech Republic a complete cutoff from Russian gas could reduce GDP by up to 6%. Global economic growth would decline by 2.6% in 2022 and another 2% in 2023.
“Hope is high that the overall plan will work and chances are good that by the winter of 2023 Europe will be energy secure. The winter of 2022, however, is going to hurt,” the article concludes.
OPEC+: “No” from Moscow to a possible reduction in oil production
Russia does not support a possible reduction in oil production in the current period, while it is possible that OPEC+ will keep its production stable, as it will meet tomorrow, as the newspaper “The Wall Street Journal” reported today, citing sources it has received relevant update (https://on.wsj.com/3cLUws9).
OPEC and its allies including Russia (OPEC+) meet tomorrow, September 5.
The President of the European Council, Charles Michelin his new TV interview with rtl he noted again that before the summer the heads of the member states had asked for specific proposals to reduce energy prices, while being asked about his previous statements about the European Commission, replied that there are issues on which the Commission has moved quickly such as natural gas storage. “For example in the storage of natural gas, there was good cooperation between the Commission and the member states” said Charles Michel.
In addition, he pointed out that “we can react to the vicious circle by imposing a ceiling on the prices of natural gas or electricity, there are various possible techniques in relation to this and we need to act in this area”, adding that “we can also act on prices of electricity, which means decoupling the impact of natural gas on electricity.”
When asked about his relationship with the President of the European Commission, Ursula von der Leyen, he said that there is a very good professional relationship, but there is a reality, explaining that the Council, the Commission and the Parliament are the pillars that make the EU operates. Regarding Vladimir Putin, he emphasized that “he is not only attacking the Ukrainian people. He attacks the democratic model, he attacks freedom, because he is an autocratic leader.”
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