EU plans to tackle rising energy prices and Russia’s gas cutoff

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Brussels — The European Commission said Wednesday that it could limit the impact of high energy prices through joint gas purchases, potential use of storm profits, and possible price limits if Russia cuts its gas supply.

Europe’s energy prices hit record highs this year after Russia, Europe’s top gas supplier, invaded Ukraine. It followed months of already high gas prices, caused by the booming demand of the economy recovering from the COVID-19 pandemic.

European Union executives have proposed a “REPowerEU” plan to end the block’s dependence on Russian fossil fuels and accelerate the use of renewable energy, but designed to limit harm to consumers. We have also set short-term options.

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The Commission said energy prices are likely to remain high for the next three years, especially for the rest of 2022.

Many of the 27 member states of the European Union have taken steps to reduce energy prices, and the European Commission has said it will allow certain measures until next winter, when energy demand surges.

These include regulations that limit end-consumer prices, potential liquidity support for traders and energy companies, and EU joint gas purchases designed to ensure competitive prices.

For electricity, EU member states will take advantage of the plunge in generators to help consumers, increase regulated retail prices for SMEs, and introduce fuel subsidies in areas with limited interconnection. can do.

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If Russia cuts its gas supply to the EU, the European Commission will seek to coordinate the cut in demand, including lowering gas demand for the benefit of less affected EU countries.

It may also introduce “administrative caps” on gas prices that are limited to emergency periods. This is a move that requires a new law.

The European Commission has called for approval of the proposal by the EU government, called for accelerated preparations in the event of a decline in Russia’s gas supply, and said it would consider adjusting the electricity market. (Report by Philip Blenkinsop, edited by Alexander Smith)