MILAN – Brussels plays its cards, which for now are limited to non-binding indications, in the game of expensive energy prices that is upsetting the global economy and – according to the IMF – poses serious risks on the recovery.
The EU without gas is alarming for stocks. And inflation goes up
by Luca Pagni
The European Commission has launched its “toolbox”, a toolbox from which member countries are invited to draw on to stop the rising trend that is causing bills to rise to double-digit percentages, in the wake of the increase in historical records of raw materials such as gas, coal and CO2 emission permits. To cope with the price increases, Brussels points the way to the Member States: energy voucher for the poorest segments of the population, financed among other things by Ets auction revenues, e reduce tax rates in a limited and targeted way over time, or even more shift the levy for the financing of renewables to sources outside the electricity bill, together with measures of a general nature for all energy consumers, which “do not constitute state aid”.
These are some of the tools indicated in the EU Commission’s ‘toolbox’, waiting for the EU communication on energy to be discussed by European leaders at the summit on 21 and 22 October. On the other hand, a path already followed independently by some governments, including Italy, which intervened precisely to calm the tensions on the market.
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Among the other interventions that Member States can take to cope with expensive bills in the immediate future, there is the possibility of aid to businesses, “in full compliance with the state aid framework”, with flexibility for investments on the energy transition. Other measures to support businesses provide for the aggregation of demand from SMEs, but always “in compliance with competition rules”. The Commission also undertakes to investigate “any anti-competitive behavior in the energy market”, will ask the EU Financial Markets Authority (ESMA) to intensify the current monitoring of the EU carbon market and will instruct the Agency for Regulator Cooperation (Acer) to evaluate the advantages and disadvantages of the current structure of the wholesale electricity market, especially in reference to a situation of extreme price volatility.
For the moment, therefore, these are indications and intentions, while in the next gas and hydrogen package expected in December, the European Commission undertakes: “It will examine the possible advantages ofjoint procurement of gas stocks“for” the creation of strategic reserves “. Participation in the joint purchase program, the document specifies,” would be voluntary and the program should be structured in such a way as not to interfere with the functioning of the internal energy market “.
An alliance to store gas: the EU plan against expensive energy
by our correspondent Claudio Tito
As for the upcoming scenario, for Brussels, wholesale gas prices will remain high throughout the winter and drop in the spring, when they will begin to stabilize at levels that will in any case be higher and characterized by greater volatility than average values. 2011-21. “The market expects the current price increases to be temporary,” explains an EU official. Today the TTF (Title Transfer Facility) index used by operators as a reference for the European market has a value of 90 euros per megawatt / hour, in April it should drop to 50, in a year to 42 and in two years to 35.
Among the hot topics of the moment, also the nuclear and relations with Russia. On energy from the atom, the European Commissioner for Energy, Kadri Simson, answered a question about its inclusion in the standards of sustainable finance: “Member States have the right, established in the Treaties, to choose their own energy mix “. Brussels is working on defining the taxonomy of green investments and the final result will be based on “scientific evidence”, he assured. And again: “The Member States have committed themselves to becoming climate neutral and with this commitment many of them have informed us that they will continue to use a low-carbon energy source which is nuclear”.
As for relations with the Kremlin, Simson explained that “so far Gazprom complied with the contracts “and added that the commitment to avoid anti-competitive behavior and manipulation by the Commission is constant. In the communication, however, there is the note that” lower than expected volumes of gas from Russia have been observed , tightening the market as the heating season approaches. Although it has fulfilled its long-term contracts with its European counterparts, Gazprom has offered little or no extra capacity to ease the pressure on the EU gas market. “
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