Filenews 25 November 2022
Yesterday, the European Commission was on the verge of ridicule, seeing its proposal for a ceiling of €275 per megawatt-hour on natural gas, and with very strict conditions, rejected with strong dislike by the majority of the energy ministers of the Member States, after a very heated debate in the Council of competent ministers.
In fact, energy ministers did not hesitate to speak with very disparaging comments about the Commission's proposal, even calling it ridiculous. It also criticises the long delay shown over the last several months by the Commission in putting forward proposals that meet the minimum requirements of the States, choosing to move within the limits of the choices and priorities of Germany and a few other countries, with similar positions.
It had become clear from the previous days that yesterday's Council of Energy Ministers would hardly reach a decision. The information was confirmed yesterday early in the afternoon, when it was announced that the debate would be resumed - in the hope of a decision - at a new extraordinary Council of Energy Ministers on 13 December. Two days later there will be a summit, which is likely to address the same issue again.
Shortly before the start of yesterday's Council, a meeting of the ministers of the 15 EU member states (including Greece) was held, during which it was decided not to approve the Commission's proposal. The 15 EU member states are calling for significant improvements to the Commission's proposal for a cap on the price of natural gas and the simultaneous adoption of all three energy regulations (regulation on solidarity mechanism, regulation on accelerated licensing of renewables and regulation on cap) at an extraordinary Council on 13 December.
Press reports indicate that the attitude of the 15 was disagreed with by the Netherlands, Austria, Finland, Denmark, Estonia, Ireland and Luxembourg. Germany disagrees with a cap on the levels desired by 15 (about €150 per megawatt-hour) but accepted a new Council on 13/12.
The proposed level of the cap at EUR 275 per megawatt-hour is considered by the majority to be much higher than the current price levels. Characteristically, the Minister of Energy of Greece, Kostas Skrekas, said that "the cap at 275 euros / MWh is not really a ceiling. We need a realistic mechanism that is put into practice. With a cap of between €150 and €200/MWh, Europe can secure the gas it needs and cause significant demand reductions."
The European Union's proposal for a gas price cap is "funny", Polish Climate Minister Anna Moskva said. Her Spanish counterpart had called it a mockery. "The text on the table is unsatisfactory (...), it does not say clearly whether it will have an impact on prices," said Belgian Energy Minister Tine Van der Stratten. Malta's energy minister, Miriam Dalli, commented that the strict conditions required to get the mechanism up and running make it "almost impossible".
