Dhe energy ministers of the EU countries remain divided on how to tackle high energy prices. At a meeting in Luxembourg on Tuesday, the representatives of several countries reiterated their call for a European upper limit for gas for electricity producers, modeled on a comparable regulation in Spain and Portugal. Germany and others rejected this. Concrete decisions should now be made at another meeting on November 24th.
“We have radically different perspectives,” admitted Czech Minister Jozef Sikela, whose country currently chairs the EU Council. “The main question is how to ensure that the cap allows us to buy the gas we need on the market.” Opponents of a price cap argue that third countries would then be more likely to sell the gas to other countries.
Federal Minister of Economics Robert Habeck (Greens) spoke of “complicated discussions” in the past few weeks. “We first had to develop a common understanding of the markets and the prices.” However, there is now broad agreement on the plan to pool gas purchases in third countries.
Habeck for purchasing groups
Before the meeting, Habeck had spoken out in favor of mandatory joint gas purchasing. It’s “the most efficient way” to bring prices down, he said. Europe has “great market power”. Purchasing groups “bring prices down”. A gas price cap, on the other hand, is “not the right instrument”.
The regulation, already applied in Spain and Portugal, provides for gas costs to be capped by electricity suppliers in order to lower electricity prices. The difference to the market price is compensated by the state. France, for example, sees it as a model for the entire EU.
The EU Commission has now presented an analysis of the consequences of expanding the “Iberian model”, which would therefore vary greatly from country to country. For example, the state subsidy for countries that produce a lot of electricity from gas – such as Germany – would be very high. On the other hand, the big importers of electricity generated from gas, especially France, would be the winners.
“If there were another mechanism, I would welcome it with open arms,” said French Minister Agnès Pannier-Runacher. But the Iberian model “works and has shown to be effective”.
“The Commission and some Member States do not see the Iberian model as a way forward,” concluded the Czech Sikela. Alternative proposals from the Commission would now have to be examined in detail. He announced that another meeting of energy ministers would be scheduled for November 24th.
