Austrian Chancellor Karl Nehammer needs the bloc to separate gasoline and vitality costs
Austrian Chancellor Karl Nehammer known as on Sunday for the EU to impose a cap on energy costs and decouple electrical energy fees from the value of gasoline. The Austrian chief mentioned failure to take action would let Russian President Vladimir Putin “decide the European electrical energy value.”
“We should lastly cease the insanity that’s going down in vitality markets. And that may solely occur by means of a European answer,” learn a press release from Nehammer’s workplace. “One thing has to occur eventually. This market won’t regulate itself in its present kind. I name on all of the EU 27 to face collectively to cease this value explosion instantly.”
The EU depends on Russia to produce round 40% of its gasoline, and government-led efforts to stockpile this valuable useful resource in preparation for winter and a possible provide cutoff have compelled corporations to purchase, slightly than promote, and pushed up costs. This distorted market is compounded by some EU international locations refusing to buy Russian gasoline in rubles, as Moscow has demanded, and EU sanctions on Russia impeding upkeep work alongside Russia-Europe gasoline traces.
Electrical energy costs throughout Europe are tied to the value of gasoline, which now prices round ten occasions what it did final yr. Nevertheless, whereas some EU international locations are closely depending on Russian gasoline for heating and trade, they use alternate fuels to generate electrical energy. Austria, for instance, generates greater than three quarters of its electrical energy from renewables, per 2020 figures from the Worldwide Power Company.
Nehammer argued that decoupling electrical energy and gasoline costs would lead to a fairer invoice for customers that extra precisely displays electrical energy manufacturing prices.
“We can not let Putin decide the European electrical energy value day by day,” he added, referring to Russia’s management of a lot of Europe’s gasoline provide.
The Czech Republic, which at present holds the rotating EU presidency, introduced on Friday that it’ll convene an vitality disaster summit “on the earliest doable date,” throughout which value caps will probably be mentioned.
Putin has likened the EU’s makes an attempt to chop itself off from Russian fossil fuels to financial “suicide.”
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