Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Soaring energy prices climb EU's political agenda

CommoditiesOct 06, 2021 02:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: European Commissioner for Energy Kadri Simson speaks during an online news conference on renewable energy at the EU headquarters in Brussels, Belgium November 19, 2020. Francisco Seco/Pool via REUTERS

By Kate Abnett

BRUSSELS (Reuters) -The European Union said on Wednesday it will examine the way its power market is run and consider proposals to revamp regulations within the bloc, as it seeks to keep plans to tackle climate change on track amid record-high energy costs.

European electricity and gas prices have rocketed this year as tight gas supplies have collided with strong demand in economies recovering from the COVID-19 pandemic.

Energy prices topped the EU's political agenda on Wednesday, with environment ministers and the European Parliament each debating the issue after country leaders discussed possible responses on Tuesday.

The crisis has divided member states over whether Brussels should intervene.

"There is no question that we need to take policy measures," EU Energy Commissioner Kadri Simson told the EU's parliament.

The Commission will next week publish a "toolbox" of options for how governments and the EU could react. It will also launch a study into whether the EU's power market is fit to deliver the bloc's planned transition to green energy, Simson said.

EU countries agreed on Wednesday to wait for the Commission toolbox before considering a joint EU response. Some governments have already rolled out national subsidies and tax breaks to cut consumers' bills.

Spain has led calls for a revamp of EU electricity regulation to decouple the price of power from the cost of gas, and joint gas buying to increase EU countries' bargaining power in global markets.

Spanish Prime Minister Pedro Sanchez said he and other countries had asked Brussels to offer an "audacious" response. "We need extraordinary, innovative measures," he said.

Not all countries agree. EU regulators expect gas market conditions to ease next spring, and some states warned against rushing into action that would have lasting consequences.

"Trying to influence the free market is something we are highly sceptical about," German Environment Minister Svenja Schulze said.

The Netherlands cautioned against interfering in Europe's power and CO2 markets, while Belgium said it was "not convinced" joint gas buying would help fend off soaring prices.

"I don't think that we should arouse false expectations. We can't really do any more than we're already doing," Portuguese Environment Minister Joao Pedro Matos Fernandes said.

The price spike has arrived as the EU prepares to upgrade its policies to tackle climate change. It has stoked concerns among countries including Poland and Romania that steps to increase the cost of polluting fuels could add to households' bills.

Analysts have said gas prices are the main driver behind surging power costs in Europe, while the cost of permits in Europe's carbon market has contributed up to a fifth of the increase.

Brussels maintains that its climate plans will cut bills by reducing their exposure to volatile fossil fuel prices and that if countries fail to quickly cut emissions they could face far greater costs in the form of deadly floods, heatwaves and wildfires.

"Let's keep our eye on the ball. The problem here is the climate crisis," EU climate policy chief Frans Timmermans said.

"The quicker we move towards renewable energy, the quicker we can protect our citizens against high prices."

Soaring energy prices climb EU's political agenda
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Trevor Roberts
LimitUp Oct 07, 2021 8:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Now Russia has Europe where it wants it, i hope Europe doesnt have to learn Russian.
dar dar
dar dar Oct 06, 2021 2:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
rubbish
Edward Smyth
Edward Smyth Oct 06, 2021 1:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
forget "free market" @ Svenja Schulze they're all manipulated anyhow, right ECB, FED, BOJ, BOE? house of cards will fall soon
Edward Smyth
Edward Smyth Oct 06, 2021 1:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i know BJ and Dodgy Dave weren't thinking very clearly or rather selfishly but 27/28 -1 still is a force to be reckoned with if they can get their heads together
Edward Smyth
Edward Smyth Oct 06, 2021 1:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't EU guys get economies of scale? what's the point of a club if in name only
Zoltan Ban
Zoltan Ban Oct 06, 2021 7:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"If countries fail to....."  These people talk as if EU has its own climate.  At this point, they can drown themselves in the seas and take their methane-emitting cows with them, it will not change the outcome, because EU only makes up 10% of global emissions.  On the other hand we see the economic disaster that is unfolding from this exercise in pointless unilateral self sacrifice for the greater global good.
Jan Rohde
Jan Rohde Oct 06, 2021 7:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Spot on. This stupidity vill destroy our civilisation.
Trevor Roberts
LimitUp Oct 06, 2021 5:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Once lefists get what they want (higher energy prices) then they act concerned.
Bipin Kochar
Bipin Kochar Oct 06, 2021 5:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A shift to renewable energy without building adequate storage is not feasible for at least next 8-12 years.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email