The European Commission is ready to discuss a temporary cap on the price of natural gas used to produce electricity, the President of the European Commission, Ursula von der Leyen, announced today, following pressure from many member states.
The ceiling, as she clarified, can be entered until the new index is created on the gas stock market.
“We need to limit this inflationary impact of natural gas across Europe. That is why we are willing to discuss a ceiling on the price of natural gas used to produce electricity,” she said at the European Parliament in Strasbourg.
“This cap would be the first step towards a structural reform of the electricity market,” Von der Leyen added, noting that this would be done on a temporary basis until a new benchmark to replace the fuel TTF is established which will once again concern the entire Union. Putin has been using energy as a weapon, causing economic and social hardship.”
The measures we have put in place provide us with the first buffer of protection.
“The definition of a ceiling on natural gas is a temporary solution until we create a new European price index that will ensure the best functioning of the market, and the Commission has already started working on it,” she said.
At the same time, Ursula von der Leyen stated that she will submit her proposal in writing in a letter to EU leaders at the Summit they will hold in Prague, stating that the European Union should implement a common system for Energy.
The president of the Commission pointed out the intention of Brussels for more advanced consultations with reliable energy providers, such as countries like Norway. At the same time, she emphasised that the countries of the European Union must strengthen the protection of vital infrastructures, citing the sabotage against the Nord Stream pipelines.
As she noted the events in Nord Stream showed how vulnerable Europe’s energy infrastructure is.
“As the European Union, we have significant market power and many of our suppliers want to enter into agreements with us, which are mutually beneficial,” she added.
She also talked about a common EU procurement system on energy, stressing that the EU energy platform should be strengthened, in the collective interest. “We must avoid a scenario where member states again dominate each other in world markets and raise prices for Europe,” she stressed.
“We need to protect the fundamentals of our economy and especially our single market,”s he went on to say, “Without a common European solution, we risk fragmenting. It is of paramount importance that we maintain a level playing field for everyone in the European Union.”
Finally, the President of the Commission argued that RePowerEU should be strengthened with additional funding- the tool to accelerate the transition to EU energy independence, which allows investments in infrastructure, such as pipelines, interconnections, or renewable energy sources. In this way, she argued, all European states will be able to accelerate the necessary investments, modernise energy infrastructures, maintain a level playing field and ensure European competitiveness in global markets.