Brussels postpones the debate on joint gas purchases to stop the rise in the price of electricity

The European Comission has parked for a mid-term reflection of the measures that the Spanish Government has proposed to respond to escalating electricity prices, such as the possibility of undertaking joint gas purchases to create strategic reserves, while urging the capitals to give “priority” to actions already provided for in current legislation that may have an “immediate” impact.

The Commissioner for Energy, Kadri Simson, has presented at a press conference the document that Brussels promised to the capitals to face the current situation, in which wholesale electricity prices have shot up 200% in the last year, while those of the retail market have increased by 9%.

The analysis of the Community Executive starts from the idea that the current scenario is temporary and the main cause is gas prices. These, the text adds, “will continue to be high during the winter months and will fall in spring, when the situation is expected to stabilize” although still at levels above the average of recent years.

In this context, Brussels raises two groups of measures: a short-term one, which includes possible measures in the current framework; and another in the medium term, which includes ideas to explore for the future and not to respond specifically to the current increase in prices.

Within this second group, the Commission states that “will explore the potential benefits of joint purchases “of gas with the objective of “creating strategic reserves”, in line with the suggestion made by the Spanish Government. In any case, these operations would be “voluntary” and in accordance with the Community rules of competition.

It will also study the possibility of review the regulation on security of supply to “guarantee a more effective operation of the gas warehouses” of the block and “will support the development of an energy reserve for the future as a key flexibility tool”, designed for batteries or hydrogen, for example.

Another demand from Spain was the wholesale market reform Of electricity. The Brussels document acknowledges that some countries have denounced “if this model is still adequate”, but adds that “it is unlikely that other alternative models will have better results.”

Despite this consideration, the Commission will entrust the Agency for the Cooperation of Energy Regulators (ACER) with an assessment of the “benefits and drawbacks” of the current design of the wholesale electricity market to “ensure that it continues to serve needs. “of the Europeans.

Faced with these options for the future, the Community Executive focuses its reaction to the current price escalation on actions within the current framework, among which is to “emergency aid” to poor consumers through vouchers or the payment of part of their electricity bills.

The text underlines that Member States can also authorize postponements for the payment of invoices of light, decree tax cuts for vulnerable households on a temporary basis and direct aid to companies or sectors, although in line with the rules on competition.

Putin denies using gas supply as a weapon

For his part, the President of Russia, Vladimir Putin, has ensured that his country “fully” complies with its contractual obligations regarding the supply of gas to Europe and has even raised the possibility of studying “additional actions”, in an attempt to make it clear that Moscow does not use energy as a “weapon” after the price rise.

“Stability and predictability are important for any market”, defended the Russian president, during an energy forum in Moscow in which he once again raised the need to sign longer term agreements. Already last week it made the European Union opt for shorter-term contracts, reproaching it for its “mistakes.”

In this sense, it has defended the Russian industry as a reliable partner, arguing that already in the previous and “difficult” winter season Russia agreed to go beyond its “contractual obligations” in terms of supply. “We have always done it and we also do it now,” he said, according to the Sputnik news agency.

Thus, he has criticized that some are pointing to Moscow “to cover up their own mistakes”, a premise that he considers “complete nonsense” and in which he sees political intentionality. Russian producers, he added, do not force a rise in prices, insofar as “it can have negative consequences for everyone.”