The Greek proposal for a ceiling on gas in the focus of the summit

of Chrysostomos Tsoufis

The European leaders will sit in their chairs in a few hours at the informal Summit in Prague and they will have before them, among other proposals, the paper of the Greek proposal for the ceiling on natural gas.

THE Greek proposalwhich is co-signed by Italy, Belgium and Poland, has the advantage that it does not refer to a specific and strictly defined price, but to a price range, which will follow the developments of the world market.

In other words, it will follow the ups and downs in the prices of the other energy exchanges in the USA, Asia and Australia, and from there an average will emerge.

The model proposed by Greece would result in a high enough price, according to the energy ministry, so as not to discourage suppliers by ensuring there would be no shortage in the market and could also be applied to long-term contracts.

In extreme situations – when e.g. sufficiency is threatened – purchases at a price higher than the ceiling will also be allowed. The proposal also foresees the intensification of efforts to save energy.

The Greek proposal has already been presented to Germany, which is at the head of the bloc of countries that do not want to hear about a ceiling, citing the risk of energy sufficiency.

Berlin is “listening with interest” – officials from the Ministry of Energy told us – but there is still no agreement. On Tuesday, anyway, and after the informal convening of the council of energy ministers of the member states, Kostas Skrekas will have personal contacts with his counterparts from Germany and the Netherlands.

Among the proposals that the leaders will discuss is the Commission’s proposal, which, however, is not as wide-ranging as the Greek one, as it only concerns natural gas that is traded within Europe, not when it is imported. Even more limited is the proposal of France – which has also signed the letter of the 15 for a ceiling in general on natural gas – for a limit on the price of natural gas used for electricity generation.

However, while Europe is discussing the issue of the ceiling in its corners, it is also trying to shield its back.

The Commission and Norway, which has already replaced Russia as the number 1 natural gas supplier to Europe, agreed on the formation of tools to stabilize the energy market.

Which means lower prices, since the Norwegian prime minister has agreed that the current ones are not politically and economically sustainable.

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