Energy ministers from the European Union gathered on Friday to discuss how to protect people from exorbitant energy costs and stop power firms from going out of business as a result of Russia gradually cutting off gas supplies to Europe due to the conflict over Ukraine.
EU diplomats report that while member states are divided on measures to regulate Russian gas prices, they generally support initiatives to assist power companies in avoiding being crushed by a liquidity shortage.
Russia, which before its invasion of Ukraine caused a crisis provided a third of Europe’s gas needs, has threatened to stop all exports if a cap is put in place.
Instead of making a final choice, the ministerial discussions on Friday are intended to narrow the possibilities to those with broad support before presenting official proposals.
As he arrived at the urgent Brussels meeting, Czech Industry Minister Jozef Sikela declared, “We are in an energy war with Russia.” We must make it clear that we will take any necessary steps to support our homes and economies.
After Russia invaded Ukraine and the West put sanctions on Moscow, energy costs, which were already skyrocketing as gas demand increased as a result of the COVID-19 pandemic, skyrocketed even further. The price shock has been severely limited by governments.
According to diplomats, the EU states widely endorsed the emergency liquidity plan the European Commission has suggested for electricity companies facing skyrocketing collateral requirements. Some also support plans to reduce the demand for electricity.
According to Estonian Economic Affairs Minister Riina Sikkut, “Russia has said that if you want our gas, take down the sanctions. It is blackmail. We cannot back down, we have to be together, and we have to have the political will to help Ukraine win.”
Resistance has also been sparked in certain European cities by the idea of recovering profits from non-gas power generators and using the money to lower consumer costs.
The EU plan would cap the amount paid to non-gas providers of electricity, including wind, nuclear, and coal generators, at 200 euros ($199.86) per megawatt hour.
France, which has the largest nuclear fleet in all of Europe, questioned whether the same cap should be imposed on all generators.
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