October 2, 2022

Wire Service Canada

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Dear Gas, Holland: “The Italian proposal on the roof for everyone is not very wise.” IEA: ‘The EU had to act first’

The A package of proposals from the European Union Commission to contain prices Gasremains to be debated, for now it has cooled the rally on Amsterdam’s Ttf: prices fluctuate 200 euros per megawatt hour, after peaking at 350 euros at the end of August. It remains to be seen how the summit between European energy ministers scheduled for Friday will unfold. there Poland Have already expressed reservations on Price ceiling from 200 euros per megawatt hour of electricity, which will affect inframarginal revenue In the’wind forceIn the Solarin energy GeothermalAnd the Hydroelectricity and in Biomass. It remains to be seen whetherDutch It will decide to approve only a ceiling on the price of Russian gas, the commission assumed. A Dutch diplomat must have made it clear The Italian idea to impose a cap on all suppliers “he is Too unwiseIn the meantime, the head of the International Energy Agency Fatih Birolinterview by courierremember that the International Energy Agency has already announced a 10-point plan “Europe could have carried out winter preparation” and stresses the delays: “EU countries did not start immediately, now they are adopting measures but I would like They’ve done this before. I hope that Winter is not long and harsh“.

Intervening now with a ceiling on supply prices from Russia appears to be of little use, given that Moscow has turned off the taps of Nord Stream 1. As for the Italian hypothesis of hitting all suppliers, according to the Netherlands, it risks backfiring: “We have to find alternatives and these The alternatives are not in Italy, Germany or Holland, but in NorwayAnd the AlgeriaAnd the LibyaQatar, Mozambique and other places in the world. I think it will be quite a lot a stranger that we as customers suddenly start unilaterally to impose a price limit.” Moreover, the source added, “We have to discuss with Norway And with other countries whether it is possible or not, perhaps even politically.” In short: it is feared that by putting a limit on Azerbaijani or American natural gas, the final suppliers will look elsewhere.

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Amsterdam, as expected, also resisted the intervention hypothesis of to organize Ttf market where reference prices for gas are being formed across Europe: “It has been an essential component for all these years and has already done an extraordinary job in sort of bookmark. We have to be very careful – explains the diplomatic source – because it is true that we are open but there is no reason in this kind of situation to drastically review things without really looking at the effects of these decisions and understanding the possible alternatives we would be. Our dependence on Russia is essentially turning to zero at a rapid pace and this, of course, caused a crisis in the trust fund of the Fund. ”

Brussels’ overall goal, in addition to reducing Moscow’s revenue, is to curb the energy crisis by redistributing Additional earnings For consumers and businesses affected by the price boom. However, the set of proposals summed up by Palazzo Berlaymont is complex and affects the market where more representatives play. Reducing electricity consumption – del 10% overall Born in 5% during peak hours According to the first drafts – perhaps it is the proposal that may encounter fewer obstacles. More complicated is finding an agreement on a maximum price of 200 euros per megawatt-hour for electricity and for Russian gas. The EU is also preparing to ask member states to implement a request for a “solidarity contribution” for fossil fuel companies. How? It is up to individual European capitals to decide. UNHCR wants to act on the basis ofArticle 122 of the treatieswhich does not require unanimity. However, a large majority is needed. The risk is that final approval of the plan will not come at the informal summit of EU leaders in Prague in a month but in European Council at the end of October in Brussels.

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Meanwhile, Moscow cannot be said to cry: yet, according to Russia fossil tracker From the think tank Crea, since the beginning of the invasion of Ukraine, collected from the sale of hydrocarbons 167 billion, of which 89 are from the European Union. exports to Chinawhich is largely energy dependent, jumped 50% in the first eight months of the year, to nearly $73 billion, according to the Russian business newspaper. Kommersant.