The division remains but at least according to all sides the distance between the two camps has narrowed.
By Chrysostomos Tsoufis
“Finally we’ll have to keep the bottles (of champagne) in the fridge, they’re not cool yet”….
With this phrase, Joseph Sikelapresiding over the meeting of the Eurozone energy ministers, tried to entertain the negative impressions caused by the fact that the fifth extraordinary meeting during his presidency, passed without agreement in the series of the ceiling price in natural gas. The Czech industry minister, however, appeared confident that the issue will be resolved on December 19, in the last scheduled meeting this time before Christmas.
The division remains but at least according to all sides the distance between the 2 camps has narrowed. It is characteristic that the marathon discussion – something that only the Ministry of Finance in the years of the Greek memorandums have become accustomed to us – started with a huge distance between the 2 sides. The ceiling camp talked about €100 and the “reactive” €275. We went ahead with the negotiation as he typically said Mr. Sikela at €150-200, then at €200-220, then at €160-220 to lead to the decision to leave the price box empty.
On the table, however, is not only the solution of a price above which the ceiling will be activated. Also discussed is the ever-increasing cap approach that wants it to shift upward after a certain number of days during which the price of natural gas exceeds it. Also, the number of days of excess that will activate the market correction mechanism as it is called, currently at 3 days, should also be agreed, as well as the spread in relation to the price of LNG.
The ministers of the countries that have reservations will have time until Monday to discuss with the experts as mentioned in the press conference after the end of the session but also to consult with their finance colleagues as the energy commissioner admitted Country Simpson the cap will have an impact on money markets and all of these need to be assessed.
Not that progress hasn’t been made, however. Even the German Minister of Economy Robert Habeck admitted 90-95% agreement on almost all technical details. An automatic mechanism for disconnecting the mechanism was agreed so that political decisions would not be required something that the opponents of the ceiling wanted, it was agreed that the ceiling should not only concern the prices of the TTF index but that other nodes should be added and the over-the-market, over-the-counter contracts, which are made between 2 parties electronically.
The agreement on the ceiling means that the issues of speeding up the licensing of renewable energy sources, measures to strengthen energy solidarity, the creation of the additional price index to the TTF and the common supplies of natural gas, which have been agreed, will automatically proceed.
What if there is no consensus? After all these exhaustive discussions, it has probably become clear among those involved that a decision must be made even without the agreement of all.
THE Joseph Sikela was clear: “I would like to have unanimity, but if we still have a big difference of opinion between those (who want a price) with the 1 in front and those who want more than €200, then I am not sure that I can achieve a unanimous decision”
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