European Fee President Ursula von der Leyen says the time is now for the bloc to impose a value cap on Russian pipeline fuel.
John Thys | AFP | Getty Pictures
The European Union will launch a “deep and complete reform” of the electrical energy market, European Fee President Ursula von der Leyen mentioned Wednesday.
In her annual State of the Union speech, delivered on the European Parliament constructing within the French metropolis of Strasbourg, von der Leyen mentioned the market was designed on the precept of benefit order, and never match for goal.
“Customers ought to reap the advantages of low-cost renewables,” she mentioned, “So we have now to decouple the dominance of the value of fuel on the value of electrical energy.”
Von der Leyen additionally mentioned there had been a shift from pipeline fuel to elevated use of liquefied pure fuel, however the benchmark used within the fuel market, TTF, had not tailored.
She mentioned the fee would work on growing a extra consultant benchmark for buying and selling that displays this alteration, and in addition ease liquidity pressures on power suppliers by amending guidelines on collaterals and taking measures to restrict intraday value volatility.
An power disaster of each provide and pricing in Europe got here to a head earlier this month as Russia indefinitely halted fuel flows to Europe by way of the important thing Nord Stream 1 pipeline.
EU power ministers met Friday to debate a five-point plan which features a value cap on Russian fuel, a windfall tax on fossil gasoline corporations’ earnings, a restrict on revenues of renewable and nuclear corporations, a compulsory goal for decreasing peak hour power use by 5% and emergency credit score traces for energy corporations.
Russian President Vladimir Putin threatened to ignore current contracts and shut off power provides to Europe fully after the plan was introduced.
Addressing the windfall tax and income cap plans, von der Leyen mentioned that whereas earnings weren’t essentially a foul factor, “it’s mistaken to obtain extraordinary report revenues and earnings benefiting from struggle and on the again of our shoppers.”
“In these occasions, earnings should be shared and channeled to those that want it most.”
She mentioned thousands and thousands of households and companies throughout the European Union had been scuffling with value rises and had been fearful for the longer term.
Tax on fossil gasoline earnings would supply 140 billion euros ($139.8 billion) to be break up between member states for power invoice assist, she added.
Von der Leyen mentioned a precedence for the bloc should be on ending its dependency on Russian fuel, with imports from the nation already falling from 40% final yr to 9% now.
“We’ve agreed to affix storage, we at the moment are at 84%, overshooting our targets,” she mentioned.
However, she continued: “This is not going to be sufficient. We’ve to diversify away from Russia to dependable suppliers like america, Norway, Algeria and others,” in addition to investing extra closely in renewables and LNG terminals.
‘Putin will fail’
Ukrainian first woman Olena Zelenska was in attendance in Strasbourg as a visitor of honor, and was given a standing ovation by parliamentarians.
Zelenska tweeted that she needed to “personally thank” von der Leyen for her contribution to Ukraine turning into a candidate for EU membership.
Von der Leyen, who delivered the speech carrying the Ukrainian flag colours of yellow and blue, made impassioned statements on the struggle, saying Ukraine had confronted the “face of evil” following the Russian invasion on Feb. 24.
“A lot is at stake, not only for Ukraine however for all of Europe and the world at giant,” she mentioned, paying tribute to the victims of the struggle, which she mentioned was additionally an assault on Europe’s financial system, power, values and future.
“It’s about autocracy in opposition to democracy and I stand right here with the conviction that with the required braveness and solidarity Putin will fail and Ukraine and Europe will prevail.”
“Immediately braveness has a reputation and that title is Ukraine. Braveness has a face and that face is the face of Ukrainian women and men who’re standing as much as Russia aggression.”
Kyiv forces have reclaimed 1000’s of kilometers of Russian-occupied land in current days, resulting in fears over Moscow’s subsequent transfer. Russia launched intense shelling on the Kharkiv area on Saturday.
Von der Leyen additionally mentioned sanctions in opposition to Russia had been “right here to remain” and it was the “time for resolve and never appeasement.”
Three quarters of Russia’s banking sector had been minimize off from worldwide markets, practically 1,000 worldwide corporations had left the nation, its manufacturing of automobiles fell by 75% in comparison with final yr and its “business is in tatters,” with its navy stripping family home equipment for components attributable to a semiconductor scarcity, she famous.
She added that she needed to increase “seamless entry” to the EU single market to Ukraine and would journey to Kyiv Wednesday to debate this with Ukrainian President Volodymyr Zelenskyy.