EU ready for 'structural reform' to stem soaring electricity prices
European Commission President Ursula von der Leyen in Bled, Slovenia on August 29, 2022. AP - Darko Bandic
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4 mins
The EU announced on Monday that it was preparing "an emergency intervention" in the electricity market to limit Europeans' bills, and is working on "a structural reform" in order to stem the rise in prices, under pressure from the Member States.
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Such a reform of the common electricity market, demanded for a long time by France but which divided the Twenty-Seven, will be on the menu on September 9 in Brussels for a meeting of EU energy ministers, which should also consider the proposal by several States of a price cap.
“
The surge in electricity prices clearly shows the limits of the current functioning of the market.
It had been designed in a very different context
,” acknowledged Ursula von der Leyen, President of the European Commission, during a conference in Bled, Slovenia.
"That is why we are currently working on emergency intervention and structural reform of the market", where electricity prices are closely correlated to gas prices, she added, without further ado. details.
Soaring electricity prices show the limits of the current functioning of the market
Ursula von der Leyen, President of the European Commission
The Czech Republic, which holds the rotating presidency of the European Council until the end of the year, is proposing an extraordinary meeting of energy ministers.
The subject of the decoupling of the price of gas and electricity should be on the agenda.
This decoupling is among others demanded by the Austrian Chancellor, Karl Nehammer, who called on Sunday August 28 the 27 “
to unite to immediately stop the explosion of prices
”.
For their part,
Berlin and Paris
are also seeking to cushion the shock at the national level.
The ruling Social Democratic Party in Germany is preparing to present new measures.
According to the
Süddeutsche Zeitung
, the SPD is considering, for example, direct aid for low-income households or the integration of heating costs into housing aid.
" Put the key under the door ?
»
Last Friday, the price of a megawatt hour in France exceeded 1,000 euros against 85 euros a year ago.
Energy vouchers will again be distributed next year to low-income households.
The government also promises that there will be no catch-up in 2023 after the end of this year's "price shield" which provided for a cap on the price of electricity.
In Italy, the word "bollette", "invoices" in Italian, is thus on the lips of all entrepreneurs and traders, reports our correspondent in Rome,
Anne le Niir.
Alfonso Sacchi, owner of the Roman restaurant-pizzeria, Taverna Le Coppelle, no longer knows how to make ends meet.
“
I have seen a considerable increase in electricity bills.
I paid 1,700 euros per month on average, now I have to pay 3,400 euros per month.
As for wood for the pizza oven, its price jumped from 19 to 27 euros per 100 kilos.
At this point, it does not suit me to continue.
Should I put the key under the door?
»
►
To read also
:
Spain and Portugal cap the price of gas to reduce household electricity bills
As noted by Arnaud de Montalembert, manager of six convenience stores whose brand belongs to a well-known French group, in Italy there is no tariff shield.
“In July, we had electricity bills that went from 3,500 euros a month, which we paid the previous year over the same period, to 13 and 14,000 for each store.
What we are asking the authorities to do is take their responsibility, that they put a cap on the price of energy.
But today, we are absolutely not reassured on these points
.
"Do not let Putin determine the price of electricity
"
In the midst of an election campaign, all parties are calling for exceptional aid measures.
But the outgoing head of government, Mario Draghi, has no intention of widening the budget deficit.
On the Austrian side, according to our correspondent in Vienna,
Isaure Hiace
, Austrian Chancellor Karl Nehammer is therefore pleading for a European solution.
He believes that “
the market will not regulate itself in its current form
” and that a price cap is therefore needed at European level.
“
We cannot let Vladimir Putin determine the price of electricity in Europe every day,
” he underlined, advocating a decoupling of gas and electricity prices.
The Austrian Chancellor says he is ready to convince member countries that are reluctant to do so.
Austria which, before the invasion of Ukraine, imported 80% of its gas from Russia, is also hard hit by the rise in electricity prices.
Last June, the eco-conservative government announced that it would reactivate the coal-fired power plant in Mellach, in the south of the country, which had closed in 2020. But this project has not yet received the approval of parliament. , negotiations are underway with the opposition on this subject.
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