The European Union in the face of the volatility generated by the supply of gas and electricity in Europe has made the idea of a historical intervention in markets increasingly a larger reality, an intervention that seeks to reduce prices for citizens. For this, the European Energy Ministers will participate in an extraordinary council in Brussels to get “all artillery” to deal with this price increase that is beginning to drown European homes.
In the document sent to the capitals of the following, it is critical of analyzing the events in the markets and identifying possible measures to respond to the high prices of electricity derived from the high gas prices. ” This just after Gazprom announced a new closure of the Nordstream 1 gas pipeline for alleged technical reasons. A decision that has caused a reaction in Brussels where the company was accused of having “fallacious pretexts” denouncing “a sample of Russia's cynicism. Which prefers to burn the gas to fulfill its contracts.”
The EU prepares its artillery to reduce energy prices in front of the Russian order
At the meeting, those present will concentrate on adopting emergency measures that seek to evaluate the advantages and disadvantages of looking to reduce gas and energy prices. Among the initiatives raised by the Czech president of the EU is to apply a limit in gas consumption that comes from “certain jurisdictions” doing this allusion to Moscow, on which countries of Central Europe depends on special Germany.
Another problem that has been identified in the European Union is the lack of liquidity in the market. Where “the power generation capacity in the EU has been [este verano] significantly lower than usual. Due to the fall of nuclear production in some countries, the reduction of hydraulic energy, the low levels of the Rin River and other rivers. That has affected the transport of coal, as well as the unfavorable conditions of the wind sector ”, this according to the document, in addition it emphasizes that the lower production of electricity by these roads is increasing the demand for gas, something that increases the prices of the latter.
In addition to this, another of the options that will be raised to the ministers is that an intervention be made to the European Central Bank, this to seek to strengthen the credit lines to some operators that are experiencing quite strong pressure situations, modify some of the energy marketing rules, and the suspension of temporary operations in the markets derived from electricity, or failing that, some bands of the future markets.