Letter: Europe Express
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Rising gas and electricity tariffs are forcing European governments to negotiate billions of euros to help families and those affected by the crisis, as concerns grow over rising electricity prices over the winter.
EU power ministers are meeting this week to discuss global response to rising oil prices, although they are worried that they will wreak havoc on the European economic crisis after the epidemic and undermine Brussels’ plans for a cost-effective but cost-effective reform.
Italy is expected this week to unveil donations to help more families. A source at the Italian Ministry of Finance said in a statement that “sound funding is available to address the issue [of soaring energy costs] can reach up to € 4.5bn ”.
Rome has already spent 1 bn in the electricity market to reduce consumer prices. Italy accounts for more than two-thirds of its electricity and exports needs.
Italy’s targets are in line with Spain’s decision last week to crack down on what it says are energy companies that benefit the most from paying taxes to consumers. Companies are expected to set a legal precedent in this regard, which has reduced property prices.
France has already announced a € 100 grant for about 6m low-income families. The UK government is also considering granting state-of-the-art emergency loans to government subsidies to attract unprofitable customers from their small retailers, and has agreed that a number of companies could move in a matter of days.
Equinor, Norway’s state-owned oil authority, said Monday that it would increase oil exports to Europe by increasing production from two North Sea farms starting Friday. Equinor said it was looking at other ways to encourage exports.
“We believe that this is very temporary as Europe is facing an incredibly strong gas market,” said Helge Haugane, chief of gas and energy at Equinor. Norway is the largest exporter of natural gas to the EU behind Russia.
The Spanish government also demanded on Monday that the EU suspend the purchase of gas in order to curb power in the retail market and create appropriate reserves.
“Member states do not have to develop strategies to improve development in the event of a market crisis,” Madrid said in a statement to the European Commission. “Oil producers are doing the right thing in order to achieve their profits. We should work together to avoid empathy. ”
The increase in oil prices has been attributed to declining savings over the long winter in Europe last year, as well as the decline in natural gas from Russia to northwestern Europe this year before the launch of the Nord Stream 2 pipeline.
Gazprom, Russia’s state-funded retailer, has fulfilled all of its obligations to its customers but has not made any further transactions through Ukraine this year, while allowing its European reserves to collapse.
Alexei Miller, chief executive of Gazprom, said Friday that although Europe is facing a long-term winter price index, “the Asian market is a major attraction for manufacturers and investors”.
Some electronics companies have warned that there is no immediate solution to Europe’s crisis. Claudio Descalzi, head of Eni in Italy – one of the world’s largest oil and gas companies – said on Monday that while governments were committed to trying to improve energy efficiency, they decided to deal with oil before starting work, which helps stabilize the market.
“This is not a temporary phenomenon, but a technological one,” Descalzi told the Financial Times while discussing rising oil prices. “You can’t cut money without reducing demand,” he said, warning that the rise of governments, human rights activists, and funders has made it increasingly difficult for oil companies to sell oil.
The fall in prices has prompted critics of EU plans to reduce greenhouse gases by raising the price of CO2 in petroleum and heating in the coming years. Brussels is urging EU countries not to distort its views on higher carbon taxes, saying this is crucial in forcing companies to change oil and start using electricity.
“Current developments are in support of Green Deal lawsuits. We want to make some changes, not just a little bit, but urgently, “Kadri Simson, EU Commissioner, told FT.”
In Germany, Europe’s largest economy, Verivox 32, a price index page, says suppliers of gas in the region have announced a 12.6% inflation on average in September and October. This could result in additional household heating for € 188 a year.
France’s strong reliance on nuclear power and a regulated pricing system means that the country is not as vulnerable to high prices as elsewhere in Europe. But retailers and consumers are beginning to cry over what they are about to meet in the winter.
UFC-Que Choisir retailers say almost every family can afford to pay 10% of electricity in 2022 – € 150 extra annually.
With elections to be held in 2022, the French government fears the wrath of consumers at rising prices. It seeks to ban the 2018 duplication yellow dress The protests came as a result of the increase in petrol taxes.
Additional reports from Richard Milne in Oslo, Anna Gross in Paris and Guy Chazan in Berlin