While the current surge in energy prices has already led some EU Member States to take national measures to mitigate the impact on consumers, the Polish delegation circulated a note, dated 28 September, calling on Member States to urgently consult on actions at EU level.
Like Spain (see EUROPE 12796/9), the Polish delegation is calling in particular for “an urgent discussion on the energy price challenge at European Council level” - which is apparently planned (see EUROPE 12801/33), according to the note obtained by EUROPE.
The note also stresses the need to put the social context “at the heart” of the discussions between Member States on the European Commission’s proposed ‘Fit for 55’ climate package.
As this legislative package begins to be discussed by EU countries, it could suffer from the current situation in the energy markets due to potential delays (the urgency to act on rising prices overshadowing discussions on the package), but also the difficulty of getting some of the package’s proposals adopted in the current context.
In particular, the proposal to establish a second EU Emissions Trading System (ETS) for space heating and road transport (see EUROPE 12762/1) could be at risk.
The Polish delegation, which opposes this idea, considers that it “would probably put additional pressure on the cost of living”, while insisting again on the need to take into account the social aspect when revising the ETS.
Furthermore, among the many causes of the rise in energy prices (see EUROPE 12795/13), the Polish note points in particular to the “dubious practices of the EU’s dominant gas supplier” (namely Russia, editor’s note), but also to the “surging” price of EU Emissions Trading System (ETS) allowances.
“Unpredictable emissions prices, driven by speculation rather than market fundamentals, call into question the financial credibility of energy companies and hinder the smooth transition of their assets”, the note says, calling for urgent limits to the influence of financial market players on ETS prices.
For his part, while he acknowledges that rising allowance prices play a role in the surge in energy prices, the European Commission’s Executive Vice-President in charge of the European Green Deal, Frans Timmermans, estimated that only one-fifth of the rate increases can be attributed to this factor (see EUROPE 12790/8).
It is worth noting that the European Commissioner for Energy, Kadri Simson, recently announced the presentation in the coming weeks of a “toolbox” to help Member States take national measures compatible with EU rules (see EUROPE 12796/9).
Rising energy prices will also be debated at the European Parliament’s plenary session, which opens on Monday 4 October in Strasbourg.
See the note: https://bit.ly/3ilGw83 (Original version in French by Damien Genicot)