August 8, 2022

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This is how the EU is trying to lower prices and what will happen from August

The gas prices continue to rise. L ‘European Union Try to run for cover, especially when considering the possibility of an additional lowering of Russian supplies: The authority is considering the steps to be taken to stop the rise in prices. Among the hypotheses: Ceiling priceIt is the gas cost cap that Prime Minister Mario Draghi would like to introduce immediately.

The time will certainly be longer, but in the meantime also the European Commissioner for Competition, Marguerite Vestagerconfirms that the European Union is working to find a solution Avoid high gas pricesbut also to avoid the risk of hydraulic, solar or wind energy becoming as expensive as gas.

Concrete steps forward can come in the second half of JulyA plan that the Commission is preparing these days and is likely to discuss before summer vacation. On the other hand, the situation is becoming increasingly critical, with the price hike recorded in the past few hours and with the risk of dire consequences also in the next few days. Let’s see what the EU thinks What will happen in the coming weeks on gas.

What will the EU do about the price of gas

The European Union is assessing power pack To submit to try Keep prices low. Certainly, the actions will concern gas, but also fuel and electricity. The premise is to start from a model Iberian price ceilingis already in effect in Spain and Portugal, but we will review the most important points.

Ceiling on the price of gas when it arrives

The decision of the executive branch of society should not come before that The second half of July. According to the Republic, the date to be set is July 20, when there will be the committee’s last call before the holidays. The European Union wants to be prepared for this AugustBecause at the time there were concerns that Russia would increase pressure, perhaps by shutting down other supplies. Moreover, the date of the ban on coal will be getting closer and closer, as will the coming of winter and the period when we will see what the European Union has been able to do for gas stock.

gas price ceiling

Draghi keeps pushing for gas price ceiling. The discussion is open about the possibility of supporting suppliers with a public contribution, which would be very expensive for countries such as Italy and Germany, which are more dependent on foreign gas.

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We must then avoid another backlash we’ve already seen Spain and Portugal, where the gas consumption exploded. Moreover, the mechanism can cover all energy sources, giving priority renewable. The ultimate goal – but understanding how to achieve it – is to keep the costs of raw materials and electricity low.

How will gas prices change

The concern of all European countries is that Gas price may continue to rise. The risk is that further cuts will come from Russia which could raise prices even more. This increase will also affect exports from AlgeriaCongo and all the other countries that Italy is now focusing on with the new agreements.

Another problem can come from the shutdown – for scheduled maintenance, according to the official version – of the pipeline Nord Stream from 11 to 21 July. Even this shutdown could lead to more price increasealso confirmed by the Minister of Ecological Transition Roberto Cingolani.

Prices are already going up: just yesterday by more than 10%. The strike that started in Norway with the risk of exports dropping 13% is not helping. Plus it also dropped The arrival of liquefied natural gas from the United States. Added to this are concerns about the situation in North AfricaStarting with Libya, where chaos returned to sovereignty. A series of factors that could lead to a new increase in gas prices.