Thriller in Europe with Energy: “Battle” for a ceiling on the price of natural gas – Greece’s positions

It is developing into a thriller Energy crisis in Europeas the 27 do not find a common front for an agreement, which has a serious impact on the economies as a whole.

Just 24 hours before the meeting of the energy ministers, who will consider the new proposal of the Commission, the European states seem to show different opinions, with time pressing, now desperately. The Commission’s proposal includes measures to limit the demand for electricity, as well as to tax excess profits.

However, the discussion draft does not include a cap on the price of natural gas. This specific issue is considered crucial, even for the unity of the EU, as the countries are divided into three. Some believe that there should be no ceiling at all, some believe that there should be a ceiling on Russian natural gas, and some others believe that a ceiling should be set on the price of natural gas as a whole (and not only Russian gas).

In accordance with Bloomberg, Europe is considering putting the cap on natural gas on “ice”. And this is because there are objections from countries (the publication typically mentions Hungary and Cyprus), while Moscow has clarified its position, declaring at the highest level that if a ceiling is imposed on the price of natural gas, it will close the taps.

On Friday, EU energy ministers will try to reach an agreement on an initial plan. Some countries, however, are expected to propose in a letter to the European Commission that the ceiling be included in the discussion, in such a way as to ensure the flow to Europe, to ensure the adequacy of supplies and at the same time to achieve the goal of reduced demand and consumption.

The Commission’s proposal

1. The Commission proposes the taxation of the surplus profits of energy companies. According to the plan, it is predicted that companies will be taxed at 33%, while the resulting amount will be directed to support households and businesses.

2. New natural gas benchmark. The Commission’s proposal may not ultimately contain a ceiling on the price of Russian natural gas, but it nevertheless proposes a new benchmark, since the TTF of the Dutch Stock Exchange is not representative of the new natural gas market. After the war in Europe, now the quantities of LNG are much larger than natural gas through the pipelines.

3. In addition, the Commission proposes a revenue ceiling for renewable energy sources of 180 euros per megawatt hour.

4. The proposal also includes the mandatory reduction of electricity consumption by at least 5% during selected peak hours, while it is proposed that member states aim to reduce the total electricity demand by at least 10% by March 31, 2023.

The positions of Greece

As far as the surplus profits of energy companies are concerned, Greece is already taxing the surplus profits of power producers and will proceed with the extraordinary “taxation of oil companies and refineries.

While for the existence of a more representative index in the natural gas market, the Prime Minister has referred many times to the need to establish a more representative index for the natural gas market, the need to preserve the conditions of competition and the rapid change of the energy mix with an emphasis on RES.

For the mandatory consumption reduction of 5%, Greece seems to be aiming to save this 5% through the plan it has announced for the State and foresees a saving of 10%, with the plan of course not progressing very fast so far. The burden seems to be borne by the country’s industries where they will each be asked to submit their own savings plan with the state compensating them.

, moneyreview.gr

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