Europe permanently “idle” in the face of the energy crisis – New appointment for measures on November 24

by

Another meeting of energy ministers ended in a wreck, with the hopes for a common European response to the energy crisis and accuracy being postponed to November 24

By Chrysostomos Tsoufis

“I hope I don’t spoil their Christmas”….This was the response of the chairman of the Council of European Energy Ministers Czech Joseph Sikela to the question whether at the next extraordinary meeting ( 4th during the Czech presidency) on 24 November, member states will finally be able to resolve their differences and finally come to the measures needed to tackle the energy crisis.

Although the ministers have the political green light from the European leaders they cannot yet agree on the market correction mechanism that will put a stop to the sharp fluctuations in natural gas prices. A number of Germany’s pre-eminent countries are reacting as they believe gas supplies will be at risk. At the same time, this mechanism should not lead to an increase in consumption. Until the next extraordinary session, the Commission has pledged to have formulated the mechanism in its full detail, giving answers to the specific issues.

Also where the “bad waste” occurs is in the question of the Iberian model, in other words the cap on the natural gas used in power generation, a solution mainly proposed by France. However, it is not supported by many countries, it is not certain that it is also supported by the Commission itself. Energy Commissioner Kadri Simpson was asked several times whether the Commission supports the measure but found it very difficult to give a clear answer. The cost-benefit analysis he presented to the ministers is full of “thorns” from the increase in costs for some countries such as Germany, the risk of increased consumption, whether subsidized electricity will also be offered to neighboring non-European countries and other political challenges it certainly did not reassure countries that were seriously considering it.

Making the agreement more difficult is the fact of the de-escalation of natural gas prices, which seems to mitigate the sense of urgency that should affect all member states. President Sikela stressed almost anxiously that “the game” is not over even though the price of natural gas has fallen by 40% in the last 20 days. Kostas Skrekas who took the first floor in the Council tried to make it clear that now is the time for decisions but in vain, the majority kicked the can even further.

In addition, some more industrialized countries emphasized the lack of support measures for large industries with more than 250 employees and a turnover of more than €50m and asked for measures that would make them competitive against their competitors outside of the Old Continent.

What the energy ministers agreed on were joint gas supplies expected to start next season, the new gas price benchmark that will be operational by March 31 and complement the TTF and support measures of energy solidarity that will ensure that no Member State is left without natural gas in one way or another.

You May Also Like

Recommended for you