Energy crisis: The Commission announces its proposal – What is mentioned in the draft

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Energy crisis: The Commission announces its proposal – What is mentioned in the draft

Crucial Summit on Thursday – Disagreements between states remain – No deal likely by Friday

With time now pressing suffocatingly, the Europeans leaders are asked to decide a sleeping line in dealing with it energy crisis and the containment of prices – mainly – of natural gas.

The Commission is expected on Tuesday to announce its new proposal for the adequacy of energy products and – if possible – the reduction of prices.

As mentioned by ERTin the Commission’s draft there is a mechanism for limiting the maximum prices through TTF, which will be activated as necessary.

The Commission Regulation is expected to have three main building blocks:

-A legal framework for the common gas market through the EU Energy Platform.

-Measures to prevent overpricing and volatility in derivatives markets.

-Solidarity measures to be taken in the event of a gas emergency declaration by a region or member state.

More detail:

-calls on member states to define a “potential threshold” for transactions under the TTF where no transaction could be concluded above this threshold.

-the importance of the common market is underlined

-also focuses on a solidarity mechanism to ensure that natural gas goes where it is needed most

-refers to measures to reduce demand within and between member states. Furthermore, it will propose strengthening the capacity of the member states so that there is a quick reaction in the event of an emergency.

– it is proposed to continue the discussion with the member states to deal with the effects of natural gas prices on electricity, but also to speed up the licensing procedures for renewable energy sources.

– an action plan is proposed for the digitization of the energy sector, as well as the creation of a new contact group with the European Parliament.

Summit: Disagreements between member states remain

The Commission’s proposals are expected to be put on the table of leaders at the Summit on Thursday and Friday. It is worth mentioning that there are disagreements between the member states and it does not seem that the issue will be completely “closed” at the Synod.

It is expected to continue next week, at the Council of Energy Ministers, on October 25.

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