There is a risk that Spain will block the conclusions today on energy if there is no common European approach on a cap on energy prices.
I am concerned, as a leader, about the cost of energy to our consumers. There are two ways to do this: (1) we can go the wholesale market; (2) we can go the retail market.
I think going the retail market - that is providing direct aid to vulnerable households - is the best way to go to minimally distort the market and keep the investment environment open for renewables. It is a process. We will listen to what the Commission is saying. I am certain that we will maybe start with different approaches but we will come together - so far, we have been fantastic at coming to common conclusions and a common approach. It is a little tricky issue because it is also technical - but it is absolutely doable.
(Question regarding the cost of energy)
This is an open question. Generally speaking, the cost of energy is international. The wholesale prices of oil products and gas are rather similar. Electricity markets work in a less perfect way, but different countries have different challenges, whether or not there will be some centralised support for governments which are in turn helping their customers. It would be great help - certainly to my country and to many countries. First, we have to agree upon mechanism how we will do it. I'm planning in my own country to focus on the retail aspect and to focus on vulnerable customers. I think this is the right way to do it. We have tailor-made programmes to help those most in need, keeping the investment environment open for new investments that we need in our energy sector.
EU opposes Spain's demands on energy.
EU leaders are in a furious energy bust-up, with Spain threatening to veto the Brussels summit if the bloc can't agree on its demands for measures to ease skyrocketing prices.
#Spain #Russia #Ukraine #Energy #OIL #Embargo #sanctions #Putin
European gas and electricity prices have been wildly surging over the last few months, made even worse by the Ukraine war. This is largely because Russia supplies Europe with around 40 percent of its gas, and has slashed deliveries to the bloc over recent months, while the Ukraine war has shaken up the supply chain. But because of how the EU’s energy pricing system works, whether electricity is generated by gas or renewable sources, the pricing remains the same.
This is particularly frustrating for Spain, which only generated 10-15 percent of its electricity from gas in 2021, while half was generated from renewables.
Member states of the 27-nation bloc have been at loggerheads as to how to address this, sending tension within the union flying.
Spanish PM Pedro Sánchez has now blown his top after leading charge since September for the EU to intervene in energy markets and change its pricing system.
Spain has been at the sharp end of the surging energy costs and is furious that electricity contracts link their bills directly to spot market rates.
These rates skyrocketed 400 percent between April and October 2021, and Russia’s invasion of Ukraine has pushed these even higher.
Mr Sánchez is now expected to press leaders to recognise that “contagion effect” and encourage the decoupling of electricity and gas prices.
But this intervention has not been warmly welcomed.
Germany and the Netherlands have pushed back Spain’s calls, despite having to make concessions.
Last year, the pair claimed that high energy prices were “transient” and would ease by Spring.
But they still uphold that there is no magic cure to the soaring prices other is no silver bullet other than reducing demand or supply.
Mr Sánchez said Thursday that if the majority of the bloc doesn’t agree to his proposal to decouple the pricing, Madrid and Lisbon will push for measures to independently address the “energetic and geographic reality” of the Iberian Peninsula.
And with tensions approaching boiling point, Mr Sánchez even went as far as to say that he would veto the conclusions of the Brussels summit if concessions are not made.
It comes as EU leaders meet today to discuss a fifth round of sanctions to be slapped down on Putin.
The bloc has taken fire for being slower than its allies to sanction Russia’s energy sector due to its huge dependence on Russian supplies.
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