A delicate balancing act
The on-going conflict in Ukraine has sent shockwaves through global energy markets, impacting everything from international relations to commodity prices.
The energy ministers of the European Union (EU) member states have agreed a common position on temporary emergency measures to curb energy prices, according to senior officials.
They have tasked the European Commission to present “a robust and tangible proposal in a matter of days,” Czech Minister of Industry and Trade Jozef Sikela said after the extraordinary Energy Council meeting in Brussels, Xinhua news agency reported.
“We will do whatever it takes to help our citizens and companies who are facing high energy prices,” he said.
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The ministers identified four main areas where the member states expect the Commission to act, including capping the revenues of electricity producers that face low production costs, a possible price cap on gas, measures for a coordinated electricity demand reduction across the EU, and measures that would help to solve the issue of decreased liquidity.
EU’s Energy Commissioner Kadri Simson told journalists after the meeting that “There is no one solution that will significantly lower energy prices and ensure our security of supply.”
“We need to keep up our work and our determination on all fronts: diversification of supplies, demand reduction and investments in renewables,” she said.
Simson said that the EU was working bilaterally with its trading partners to negotiate more affordable prices. She acknowledged that nothing was decided yet and said that “we will be proposing unprecedented measures next week.”
The ministers may meet again later this month to discuss and adopt the final plans.
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