Electrical energy costs: Brussels dismisses fuel worth caps, a setback for France – 2022-10-25 at 14:43

Electrical energy costs: Brussels dismisses fuel worth caps, a setback for France – 2022-10-25 at 14:43

The Fee dismisses the cap on fuel costs for electrical energy, of which France would have been “the most important web beneficiary”.


The cap on fuel costs for electrical energy manufacturing, defended by France at European stage, was not retained by the European Fee, which proposed another on Tuesday, October 25.

European vitality ministers, assembly in Luxembourg on Tuesday, will focus on this new proposal, which provides to the initiatives already offered by Brussels on October 18 to curb vitality costs. It was not a part of the “roadmap” adopted on the summit of heads of state and authorities of the Twenty-Seven on Thursday and Friday.

The leaders had requested the Fee for “concrete choices” on a set of measures, together with

joint fuel purchases, supervision of the wholesale fuel market

but additionally -despite the sturdy reluctance of Germany-

a cap on fuel costs for electrical energy


A worth primarily based on the precise manufacturing price

Brussels is sketching out “a extra structural” and “in a short time” relevant technique for influencing electrical energy costs, by rising the share of contracts fixing prematurely the value acquired by producers of electrical energy from renewables and nuclear primarily based on their precise price of manufacturing. That

would mechanically scale back the volumes of electrical energy bought on the wholesale worth

of the gas-indexed market.

The capping of fuel costs for electrical energy, already utilized in Spain and Portugal, consists in softening the fuel payments of electrical energy operators (the distinction with the market worth being coated by a public subsidy), with the intention to deliver costs down electrical energy.

In a doc submitted to the States and consulted by AFP, the Fee considers that its extension within the EU would have very unequal results.

Keep away from unequal results

With a ceiling of 100-120 euros per megawhatth hour, operators can be inspired to purchase extra,

on the danger of inflating European fuel consumption “from 5 to 9 billion m3”

.The chance can be to see hovering exports outdoors the EU (United Kingdom, Switzerland, the Balkans, and many others.) of electrical energy backed by Europeans.

Lastly, the price of subsidies would differ vastly: States with a variety of gas-fired energy crops (Germany, Netherlands, Italy) would pay a really excessive invoice. The large importers of electrical energy produced from fuel can be winners:

“The most important web beneficiary can be France.”

“If there may be one other mechanism, I welcome it with open arms. However what is for certain is that (the “Iberian” mechanism) exists in Europe, works and has proven that it’s efficient: c You will need to watch it to the tip”, reacted the French Minister for Power Transition Agnès Pannier-Runacher on her arrival in Luxembourg.

In the intervening time, nonetheless divided on market interventions, European ministers are attempting to agree on the phrases of joint fuel purchases at EU stage, a measure on which there’s consensus.

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