The unprecedented surge in electricity prices, which have increased nearly 10 times in the past year, has fueled inflation and dramatically increased the economic burden on businesses.
The European Commission began to talk about urgent action to prevent sharp increases in electricity prices, now the EU is collecting proposals to reform the electricity market. Bloomberg reported this.
“Today’s rising electricity prices, for various reasons, show the limits of our current electricity market design,” von der Leyen said. “It was designed under different circumstances and with completely different goals. Therefore, we are now working on emergency intervention and structural reform of the electricity market”.
An unprecedented surge in electricity prices, which have risen nearly 10 times over the past year, has fueled inflation and dramatically increased the economic burden on businesses and households recovering from the pandemic.
A growing number of member states are calling for price caps, and the Czech Republic’s EU presidency has called for an emergency meeting of energy ministers on September 9. The exact plan for EU intervention is is still being worked out, and EU diplomats said the commission could announce details as early as this week.
A draft internal EU document states that the EC is considering capping gas prices to avoid “carried” costs if Russia significantly limits or cuts gas supplies.
Let us remind you, today the price of gas in Europe has fallen sharply. Gas futures fell in price after a sharp rise last week on the back of news about Germany’s injection volume.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.