Minister Ribera now sees a spirit of consensus after the proposal that she described as “shameful”

The third vice president of the Government and Minister of Ecological Transition, Teresa Ribera, said yesterday that, despite the great differences on the future cap on the price of gas purchases between different EU countries, a “spirit of consensus” prevails to polish the proposal of the European Commission and reach an agreement on December 13. “I think we can reach a consensus on December 13” at the next extraordinary Energy Council because “the conviction that we must respond by rising to the occasion clearly prevails,” Ribera said at a press conference after an emergency meeting held in Brussels.

Ribera was particularly critical of the “market correction mechanism” for the TTF gas futures index proposed by the Commission, which “was intended not to be applied” and consisted of an “Ultra security system for an ultra-scandalous process of price rise”.

This required, among other safeguards, that gas prices in the one-month TTF were above 275 euros for 14 days and that there was also a difference of more than 58 euros with respect to other international references.

These conditions, designed to please Germany and the Netherlands, very reluctant to the top, meant that if the mechanism had been in force in 2022, it would not have been activated last August, when gas prices broke their historical record in the European Union.

However, the fifteen countries that demand an intervention in the price paid by the EU for supplying gas understood that the mechanism had to be linked to the other two texts submitted for discussion in the council on Thursday. These deal with joint gas purchases, energy solidarity, creation of an alternative index for liquefied natural gas and acceleration of permits to install renewable energy plants.

A political agreement was reached on them, but they were not put to a vote, at the expense of also agreeing on the gas price cap. The Czech Republic, which holds the six-monthly presidency of the EU Council, has “understood the need to link the three texts and reach an agreement at the same meeting,” Ribera said.

“There is support in principle for the first two texts waiting to be able to have an agreement on the third. In these coming days there will be intense work by the technicians (…) to be able to polish, agree and find the most balanced solution,” he added. “The prevailing spirit in the room is a spirit of agreement” to “reach that consensus next month,” he added.

The Spanish minister added that among the Twenty-seven there is a “broad consensus around the idea that it was better to think of a dynamic reference” instead of marking a fixed ceiling “that could generate an incentive to increase the price offered to European consumers.” Ribera also claimed “clauses to activate and deactivate symmetrical, clear and quickly applicable.”

The EC defends its initial plan despite widespread unrest

The European Commission (EC) yesterday defended its proposal to establish a ceiling of 275 euros per megawatt hour (MWh) despite the discomfort it generated in practically all capitals either because it is practically impossible to activate or because it could generate problems in the security of supply.

Upon arrival at the extraordinary meeting of European Union (EU) energy ministers in Brussels, Commissioner Kadri Simson acknowledged the “concerns” that were expressed about the so-called “correction mechanisms” of gas proposed by the Commission, but argued that “it is based on the mandate” given by the heads of state and government.

“It is an extraordinary proposal but times are also difficult and we have to be prepared, we may need that tool if we face another period of extremely high gas prices,” he said.

Faced with doubts from countries such as Germany and the Netherlands about the supply problems that the gas cap could cause, the head of Energy of the Community Executive said that the legislative project takes into account this possibility and also affirmed that it would only be activated “if it is really necessary”.

These safeguards provoked the indignation of many capitals that have long demanded from the EC a proposal to limit the price of gas purchases. “I hope today’s discussion will be quite spicy,” said Czech Industry Minister Jozef Sikela.

Source: Atlántico