The Energy Ministers of the European Union Member States will meet in Luxembourg on Tuesday 25 October for a first exchange of views in camera on the European Commission’s latest proposals against soaring energy prices, while continuing their work on two legislative dossiers: the gas package and the revision of the EU Energy Performance of Buildings Directive (EPBD).
New proposals for emergency measures to reduce gas prices - and, by extension, electricity prices - presented on 18 October were agreed by the European Council on the night of Friday 21 October (see EUROPE 13045/1).
The 27 Heads of State or Government thus gave the green light for further work on the Commission’s package, while providing guidelines. However, these leave the door open to various options and, unusually for the European Council, are accompanied by very specific conditions.
The Commission’s proposals to be discussed by Ministers include in particular: - the development of an alternative benchmark to the Dutch TTF for EU liquefied natural gas (LNG) import prices by 2023; - the introduction of a temporary maximum dynamic price (pending the new index) at which transactions on the spot market for fossil gas can take place at the TTF exchange point; - joint purchasing of gas; - default solidarity rules between Member States in case of supply shortages; - a temporary mechanism to cap intraday price peaks (see EUROPE 13045/1, 13044/1).
The ministers will also discuss the idea of extending the Iberian system to the whole of the EU (see EUROPE 12968/4). The European Council conclusions do invite the Commission to “urgently present concrete decisions” on the idea of a “temporary EU framework for capping the price of gas in electricity generation”, while linking this option to a series of conditions.
This wording has been subject to different interpretations among the EU27.
For French President Emmanuel Macron, ministers now have a clear mandate to move forward on the idea of the Iberian mechanism. “At the level of the 27, we have agreed to move forward on the Iberian mechanism. I think that this is a major step forward which will enable the Commission to make proposals on this point next week”, was his positive response.
German Chancellor Olaf Scholz, who is reluctant to see a cap on gas prices, said that it is more a question of looking at all possibilities. He also referred to the inclusion in the conclusions of a clause that the European Council “remains seized of the matter”. While he hoped that ministers could reach an agreement (under the qualified majority rule), he also felt that the issue of capping should require a unanimous decision. If the Commission makes a concrete proposal on this point, the matter could therefore be referred to the European Council.
“There are still many technical issues to be resolved”, said Finnish Prime Minister Sanna Marin.
Agreement on the EPBD?
On the other issues on the agenda, the Ministers will in particular try to reach a political agreement (‘general approach’) on the revision of the EPBD.
Presented by the Commission on 15 December, the revision proposal aims to achieve a fully decarbonised and zero-emission EU building stock by 2050 (see EUROPE 12854/13).
There are still divisions between Member States, in particular on the article on minimum energy performance standards for buildings (see EUROPE 13040/2).
This topic will be preceded by a policy debate between ministers on the legislative package aimed at gradually increasing the share of renewable and low-carbon gases and decreasing the share of fossil gas in the EU’s energy system (see EUROPE 12854/11).
The package includes: - a proposal for a Directive on common rules for the internal markets in natural and renewable gases and hydrogen (recast of Directive 2009/73); - a proposal for a regulation on the internal markets for natural and renewable gas and hydrogen (recast of regulation 715/2009).
These two public discussions will take place before the debate on the energy crisis.
Lithuania will also share information on nuclear safety at the Belarusian nuclear power plant in Ostrovets (see EUROPE 12734/28).
See the conclusions of the European Council: https://aeur.eu/f/3r8 (Original version in French by Damien Genicot with the editorial staff)