The EU is to present a raft of measures to help mitigate the worst effects of the record-high energy prices currently being seen across the continent, said the bloc's energy chief Kadri Simson during a plenary session with the European Parliament.
Kadri Simson. Photo: Philippe Buissin / European Union
Commissioner for Energy Kadri Simson told the European Parliament that the Commission was working on ways to mitigate the current "price shock". Photo: Philippe Buissin / European Union
She told MEPs that next week the Commission will present a "toolbox of measures" that EU member states can take covering the short and medium-term. Some of the potential solutions to the "price shock" that will be presented include the cutting of energy taxes, provision of direct payments to consumers most at risk of energy poverty, and the facilitation of long-term power purchase agreements for businesses and SMEs in particular.
She rebuffed accusations, such as that made by Russian President Vladimir Putin, that the EU's climate policies were to blame for high prices, arguing that it had more to do with the bloc's "dependence on imported fossil fuels and their volatile prices".
Read more: Putin Calls For Smoother Green Transition
"The Green Deal provides the only lasting solution to Europe’s energy challenge: more renewables and improved energy efficiency," Simson told Parliament, adding that wind and solar continued to generate the cheapest electricity and are not vulnerable to price volatility.
She said that the best response was to accelerate the move towards the bloc's goal of 65% renewable energy by 2030 and defended the EU's electricity market design, saying that Europe was not immune to global price rises.
The Commissioner also said that reforms of the gas market would be announced by the end of the year, which would involve reviewing issues around storage and supply.
Earlier this week, finance ministers from France, Spain, Greece, Czech Republic and Romania issued a joint letter to the European Commission calling for an "immediate reaction to the dramatic price surge", and reform to the wholesale energy market.
Read more: High energy prices show need for green transition, says EU's Timmermans
Paris and Madrid are also calling on Brussels to end the marginal pricing system, whereby the cost of energy is determined by the most recent, most expensive source of energy purchased. Simson suggested that the Commission was unlikely to reform rules of energy pricing.
One area that she said the Commission is "looking at very closely" is gas storage and procurement. She acknowledged that storage levels were still lower than usual at this time of year, and cited a Spanish proposal calling for joint procurement of gas at an EU level.
"It’s not a new idea and has been discussed before, but complexity and practical obstacles have always outweighed the benefits," she said.
Simson also addressed MEPs' concerns about the possible manipulation of the energy market, particularly by Russia. Last month, a group of over 40 MEPs called for an investigation into Gazprom over the issue, arguing that Moscow was withholding gas to artificially inflate prices.
Read more: MEPs urge Gazprom probe over sky-high gas prices
"We are looking into this claim, through our competition angles. Our initial assessment indicates that Russia has been fulfilling its long-term contracts, while not providing any additional supply," said Simson, before reiterating her earlier statement that renewable energy is "the way forward".
"I would prefer to be in a position where we aren’t dependent on foreign fossil fuels," she concluded, adding that she would present Parliament's "concerns and suggestions for action" with President von der Leyen and the College and that they would be reflected in next week's toolbox announcement.
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