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European ceiling, “adjustment” tariffs…, industrial proposals to reform the European energy market

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French industrialists, large consumers of gas and electricity, proposed this Wednesday five measures to reform the European energy market, a “vital emergency” according to them, to get out of the crisis.

With gas and electricity bills soaring historically, “producing will soon be out of the question,” Uniden said in a news release.

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This association brings together French manufacturers of aluminium, steel, minerals, cement, construction materials, glass, paper, petrochemicals, chemicals, automobiles, electronics, transport and agri-food, that is, more than 70% of industrial energy consumption in France.

According to these industrialists, the complex reform in which the countries of the European Union must start working on next September 9 during an emergency meeting of the energy ministers must be articulated around five priorities.

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hellish spiral

First of all, to get out of the European norm that requires that the maximum “spot” price (spot, editor’s note) of electricity be raised automatically in all the Member States as soon as this price approaches it “not even for one hour and in one country”. “This infernal spiral does not limit speculation”, say the industrialists.

They also want the establishment of a “European cap on the price of gas, fueled by a low but general tax on all energy transactions, paid by suppliers and all market intermediaries, which serves, through a compensation fund European, to compensate for the difference in relation to international prices”.

They ask for the legal possibility for the Member States that so wish to regulate the wholesale market by introducing “crisis adaptation tariffs (Tarac)”, to protect consumers against market prices “decorrelated with production costs”, generating “undue profits” on the one hand and “inflationary demand destruction” on the other.

Long term supply

Manufacturers also want long-term supply contracts to be made easier.

Finally, they advocate the design of a new “hybrid” market for the wholesale supply of electricity in Europe, taking into account both the average investments and the costs of carbon-free production (nuclear, hydraulic, renewable) and a “spot “. built, as at present, on the costs of the last plant called to ensure the balance of the electrical system in the 27 countries and avoid a blackout.

Saluting the fact that the Europeans have demonstrated in the Ukraine crisis “their ability to urgently adopt crisis measures”, the president of Uniden, Nicolas de Warren, believes that the reform of the European electricity market can be “the cornerstone of the performance industry of Europe”. as was the pooling of coal and steel (CECA) in 1951, constituting the foundations of the European Union.

Author: CO with AFP
Source: BFM TV

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