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EU countries clash over reforms needed to tackle energy price spike
(EurActiv, 2 Dec 2021) Energy ministers from European Union countries are meeting in Brussels on Thursday (2 December) to debate their response to high gas and electricity prices, with countries still divided over whether the recent price spike calls for an overhaul of the bloc’s energy market rules.
Energy prices surged to record highs in autumn as tight gas supplies collided with high demand in European economies recovering from the COVID-19 pandemic.
While gas prices have retreated from the peak seen in October, they remain relatively high and reserves are depleting steadily as the winter heating season settles in.
This has pushed up electricity prices, which are driven by “marginal” production capacity available from gas power plants that can be fired up at short notice to meet peak demand.
But EU countries like France and Spain say this power pricing mechanism is unfair because it does not reflect their own energy mix, dominated by cheap low-carbon electricity coming from renewable sources or nuclear power plants.
Energy prices must “reflect the costs of the generation mix used to serve their consumption,” said a paper submitted by France, Greece, Italy, Romania and Spain ahead of today’s talks.
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EurActiv, 2 Dec 2021: EU countries clash over reforms needed to tackle energy price spike
