European measures concerning energy prices

European Commission adopts recommendations for member states to cope with rise in energy prices.

Corina Cristea, 14.10.2021, 13:50

The European Commission presented a set of temporary
measures it proposes to EU member states to compensate to some degree for the
steep rise in energy costs. They include the possibility for member states to
grant emergency aid to household consumers, for example in the form of vouchers
and bill deferrals. Other recommendations include the possibility to grant
state aid for companies and specific reductions in taxes and duties.

The idea was also raised to create strategic gas
reserves through common acquisitions, just like in the case of vaccines, but
this will only be possible from 2022. Kadri Simson, the European Commissioner
for energy said risk analysis groups will be created to identify the areas with
unusually small gas reserves and assess the possibility to create common
regional reserves. The Commission will also support investment in renewable
energy sources and energy efficiency and look into the functioning of the
European electricity market.

Based on the conclusions of the assessment, it does
not rule out the consolidation of consumers’ position on the energy market by
allowing them to not only choose and change their suppliers and generate their
own electricity, but also to be able to form energy communities. Commissioner
Simson said medium-term measures are being considered to make our energy system
more resilient and flexible in order to cope with any future volatility during
the transition. What we’re seeing today is exceptional, said the commissioner,
adding that the internal energy market has worked well in the last 20 years, and
that we must make sure it will continue to work in the future, while realising
the goals of the European green pact, consolidating the EU’s energy
independence and meeting the climate objectives undertaken.

Some international partners, like Norway, have already
indicated that they are planning to boost energy deliveries to Europe. Russia
is also ready to increase gas deliveries to Europe, at the latter’s request,
but wants long-term contracts, said president Vladimir Putin, rejecting
accusations that Moscow may be limiting these deliveries for political reasons.
Russia has been accused of unfair competition, as well as blackmail, of
limiting gas deliveries to force Germany approve faster the North Stream 2 project
that would allow Russian gas supplies to bypass Ukraine. (CM)