Categories: Politics

Jetten: Irresponsible gas price ceiling but happy joint buying Related articles

Minister Rob Jetten (Climate and Energy) is “very happy” that the EU can jointly buy gas now that EU ministers have agreed on a maximum gas price. Being able to buy together is “the great advantage” of the agreement on a market mechanism to counter price peaks, “potentially dangerous” for gas supplies, said the minister in Brussels.

Rob Jetten (centre) is ‘very happy’ that the EU can jointly buy gas now that EU ministers have agreed on a maximum gas price. (EPA)

The Netherlands will certainly work with Germany to ensure gas storage is filled on time next winter and to secure additional liquefied gas (LNG) stocks, Jetten said after yet another consultation on a “market correction mechanism “. After weeks of negotiations, a large majority agreed on a price cap on the main Amsterdam gas market on Monday.

Abstinence

Jetten abstained from voting. The D66 member considers it “irresponsible” that the mechanism enters into force in February, while an analysis of the consequences will be published only two weeks later. ‘I am concerned about the potential disruption of the European energy market, the financial implications and, above all, the security of supply for Europe. And I hope these worries soon prove unfounded,’ says Jetten. If the analysis shows that the intervention is “reckless”, then the European Commission should “assume its responsibilities”. Jetten does not rule out that the mechanism will not be used.

From the outset, the Netherlands resisted the intervention of market forces. But according to Jetten, “the Dutch team” was able to negotiate even more guarantees so that the mechanism is immediately deactivated in the event of an undesirable side effect of a maximum trading price. For example, why gas suppliers are ignoring the EU in their quest for higher selling prices. Or because the demand for gas is soaring. On 1 November next year, it will evaluate whether the system is working properly and whether it might need to be extended.

Author: ap
Source: BNR

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