Ursula von der Leyen, president of the European Commission, declared on Wednesday that a temporary cap on gas prices, along with price negotiations with gas providers and group purchases, will result in reduced energy prices in the European Union.
In order to secure the security of supplies, gas price caps “must be carefully crafted,” von der Leyen said to the European Parliament in Strasbourg, France.
The commission chairman wrote to EU leaders on Wednesday in advance of a summit later this week in Prague: “Given that the EU imports practically all of the gas it consumes, the greater the public intervention we envisage on gas prices, the more demand reduction and solidarity we require.” show,” according to Bloomberg News.
Therefore, von der Leyen continued, “we must understand the risks associated with gas price capping and take the required preparations.”
The prospect of placing a cap on the cost of gas used to produce power was another suggestion made by the speaker. However, she added, “I think that we should also look at gas prices apart from the electricity market.”
Without going into greater detail about how the suggested price ceiling was developed, Von der Leyen believed that limiting gas prices might lessen their volatility.
In order to reduce energy prices, Von der Leyen also depends on negotiating lower pricing with gas suppliers like Norway and the involvement of EU member states buying gas.
The head of the commission stated that EU nations’ actions must “keep equitable opportunity within the EU.”
The statements made by Von der Leyen come amid Germany’s 200 billion euro ($198.
2 billion) aid package drew concerns that other nations might not be able to afford such packages, and requests for a restriction on petrol prices were heard from several of the capitals of the bloc.
The European Union’s leaders will get a letter outlining these issues before their two-day summit in Prague, which starts tomorrow, Thursday, according to the Commission President.
Since Russia invaded Ukraine in February of last year, according to von der Leyen, EU countries have made strides in lowering their reliance on Russian fossil fuels.
As a result of the European Union’s backing for Ukraine, the sanctions it imposed on Moscow, and its response to the Russian invasion, Russia has significantly decreased its energy exports to the EU. The European Union rushed to buy gas from other sources as a result of this policy, which caused prices to spike sharply.
According to Von der Leyen, the proportion of Russian gas that the European Union imports will drop from 41% before the conflict to 7.5 percent in the future.
Having been able to purchase gas from other exporting nations like Norway, Algeria, or the United States, she said that the bloc’s gas storage facilities are currently filled to around 90% of their capacity.
Josep Borrell, the High Representative for Foreign Affairs and Security Policy of the European Union, issued a warning today against ceasing support for Ukraine due to the war’s negative economic effects.
The head of the European Commission wants to set a gas price ceiling to reduce energy costs.
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