Meeting of Energy Ministers: “Black smoke” for the cap on natural gas – 4-way plan in the Commission

The meeting of energy ministers ended without an agreement on a ceiling on the price of natural gas, as the countries that disagreed did not back down from their positions, refusing to adopt the proposals of Commission.

According to reports, the energy ministers they came up with a four-way plan, which they forwarded to the Commission and are awaiting the latter’s examination and official proposals.

It should be noted that many countries of Europe had expressed their displeasure with the plan announced by Ursula von der Leyen regarding the ceiling on the wholesale price of natural gas, as their markets remain largely dependent on Russian natural gas.

Russia had clarified their position, that in the event that a ceiling is decided on the price of natural gas, it will close the tapswith whatever this implies for the markets and the operation of the industry.

Germany and Austria oppose the cap

Germany opposes the ceiling on the price of Russian natural gas, pointing out that some countries remain dependent on these supplies. Austria agrees with this view.

“These countries still have dependencies that force them to use this natural gas”said Germany’s Minister of Economy, Robert Hambeck to a reporter in Brussels, according to Bloomberg. “Therefore, it would not be correct to say that Germany always asks for understanding, but other countries cannot have it,” he explained.

Austria, which still needs Russian gas supplies even if its dependence on it has decreased, also does not support the cap, the country’s energy minister said. Leonore Gevesler.

Germany also opposes a blanket cap on natural gas prices, as it believes it would send the wrong message to the market, Hambeck added. He said he supports a cap that would cover basic energy needs, with consumers paying more, however, when their usage exceeds a certain limit.

Today the extraordinary meeting of the EU energy ministers takes place, where the Commission’s proposal for a ceiling on natural gas prices or the separation of electricity prices from natural gas will be discussed. Essentially, the scenario of an extraordinary and fundamental change in the EU energy system will be discussed, a process which is expected to be complicated and long. However, given the spike in natural gas prices and the alarm in the Old Continent over the reduction in energy flows from Russia, officials are rushing to find an immediate solution.

The position of Greece

The imposition of a ceiling only on Russian gas is not considered satisfactory by the Greek side, which wishes to impose a ceiling on the TTF and the prices per power generation technology based on the Greek model in which the producers are reimbursed.

Energy market players comment that the cap on Russian gas would result in European energy companies breaking their contracts with Gazprom, which would lead to legal battles with an uncertain outcome and potentially serious financial consequences.

Besides, the adoption of a cap on Russian gas would have to be applied compulsorily by Greece as well – a development that would result in the interruption of the flow of Russian natural gas to our country through the Turk Stream pipeline, which currently continues normally.

Regarding the upper limit of 200 euros, the same sources state that in Greece a ceiling of 112 euros is already applied for hydroelectric energy and 85 euros for RES. A universal application of the Commission’s measure would lead to a reduction in surplus profits from producers, resulting in a consequent reduction in funds for subsidizing electricity bills.

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