European Union energy ministers were divided on whether to impose a cap on Russian gas prices on Friday as they came together to develop measures to protect citizens and businesses from very high energy bills.
But ministers who came to the emergency meeting noted broad support for measures to prevent energy suppliers from being overwhelmed by a liquidity crisis, and many said there was an urgent need to decouple the price of gas from other cheap energy sources.
Friday’s ministerial talks aim to narrow the options for further discussion, rather than reach a final decision on ways to deal with a crisis fueled by Russia’s invasion of Ukraine. But many said that agreement and action must be swift.
“We are in an energy war with Russia,” said Czech Industry Minister Jozef Sikela. “We must send a clear signal that we will do whatever it takes to support our families and our economies.”
Energy bills, already soaring as gas demand recovers from the Covid-19 pandemic, have soared since the war in Ukraine. EU governments are scrambling to contain the energy price shock as Russia cuts gas supplies to Europe following Western sanctions.
The EU’s proposal to limit Russian gas prices has so far failed to gain support from most countries, and Russia threatens to cut the dwindling supply that continues to flow completely if such a step is taken.
The Baltic states are among those who support the idea, saying it would deprive Moscow of money to finance military action in Ukraine.
But Central and Eastern European countries, which are much more dependent on Russian fuel than others, fear losing all their supplies, with some questioning whether the ceiling will have much of an impact on lowering prices with deliveries so low.
German Economy Minister Robert Habeck said EU ministers should give Brussels the green light to draft legislation to separate the price of gas from the price consumers pay for energy from other utilities.
The European Commission said this week it will propose a measure to seize revenue from non-gas electricity generators and spend it to lower consumer bills.
A draft of the Commission’s proposal, seen by Reuters, will have a cap of 200 euros ($201.74) per megawatt hour on revenue generated by producers that do not use gas as a source. Applicable to wind, nuclear and coal generators.
source: Noticias
