Harsh interventions on the gas and electricity market are not imminent from Brussels. This results from a leaked version of a proposal from the European Commission, which FD writes about. This shows that there will be no decoupling of steam and gas prices.
This decoupling should ensure that an increase in the price of gas does not immediately lead to an increase in the price of electricity. The Netherlands strongly opposed this proposal from the European Commission (EC) and “will be very happy with this ruling”, thinks energy expert Ronald de Zoete.
There is, however, a new proposal in the EC plan. For example, Brussels wants a minimum and maximum price to be introduced for electricity producers. On the one hand, this creates a purchase guarantee for the products, but “the consumer is also protected in the future,” says De Zoete.
Keep reaching the price peak
The solution that has been found is what the energy expert calls a ‘polder solution’. “We continue to face price shocks. (…). But in times when the price of electricity is very high, we can be compensated through government funds.’
The Commission also wants to give citizens the right to a fixed price energy contract. On the other hand, Member States must ensure that the risk of payment defaults is reduced. The full EC plan will be presented on 16 March.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
