EU von der Leyen backs Russian pipeline gas price ceiling

European Commission President Ursula von der Leyen speaks at a post-meeting press conference at the Baltic Energy Security Summit in Marienborg, Kongens-Lymby, north of Copenhagen, Denmark, 30 August 2022 to attend. Mads Claus Rasmussen/Ritzau Scanpix/via REUTERS

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MURNAU, Germany (Reuters) – European Commission President Ursula von der Leyen said on Friday that Europe should impose a price cap on Russian pipeline gas. .

She also called for measures for electricity suppliers to skim some of the windfall profits from the gas crisis and use the money to help vulnerable citizens and businesses.

Speaking to reporters at a meeting of German conservative parliamentarians in Murnau, Foreign Minister von der Leyen told reporters: “I am convinced that it is time for Russia to cap the price of pipeline gas to Europe. I have,” he said.

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“A gas price cap could be proposed at European level, and there is also a legal basis at European level for temporarily skimming profits as an emergency measure during a crisis,” she added.

In the EU’s current electricity market, generators sell electricity at a price set by the last generator needed to meet demand. Gas plants often mean that the recent surge in gas prices has pushed up electricity costs.

Since Russia invaded Ukraine, it has cut gas supplies to Europe, sending gas prices skyrocketing to record highs. As countries try to fill their gas reservoirs for the winter, they are scrambling to find alternative sources.

The European Union’s energy ministers will meet on September 9 to discuss how to deal with the price spike.

On Sept. 14, von der Leyen will outline the European Commission’s thinking on the EU’s emergency measures to deal with price spikes, a senior commission official said more

“Over the last few weeks and months, we have been working hard to counter (Putin’s) manipulation at European level,” von der Leyen said in Murnau.

“We agreed on joint (gas) storage and to date we have reached an average filling level of 80%, which is two months earlier than expected,” she said, noting that Norway is now ahead of Russia. He pointed out that a lot of gas was supplied to the block.

“But this alone is not enough. We know that the electricity market is no longer working because it has been massively disrupted by Putin’s manipulation,” said von der Leyen. added that it is now choosing to flare gas rather than supply contract volumes to Europe. .

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Reported by Reuters TV. Written by Sabine Siebold and Paul Carrel. Editing by Matthias Williams and Jason Neely

Our standards: Thomson Reuters Trust Principles.


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