The Czech Republic and other countries are calling for caps on gas prices for power plants, pushing up electricity bills for businesses and homes. The European Commission is now proposing that electricity from “cheaper” nuclear and renewable sources should be regulated. They are the ones who will benefit most from the current high price.
European Commission We have already completed a long-awaited proposal to keep energy prices down in Europe.In it she favored a price cap Electricity in member states of the Union.
However, unlike most scenarios considered so far, the proposed fee was available in the newspaper Aktuálně.cz and was first pointed out by Server. politicswe recommend going the route of setting maximum prices for electricity from power plants that are cheaper than gas plants that drive up the final price. Other power plants based on resources.
According to the working document, Brussels claims that the power plants mentioned will cost less to produce than gas-fired plants and therefore will collect the best profits at the current high prices. Profits should therefore come from cheaper sources and any amount above the regulated price should be distributed to the most vulnerable households and businesses in member states, according to the European Commission.
With dramatic energy price hikes already threatening major European companies, the Czech Republic wants to convene an extraordinary meeting of its energy ministers in Brussels next Friday, where it hopes to reach agreement on a pan-European solution. increase. The Commission’s proposal is an entry into the debate.
As president of the EU, the Czech Republic will see what other solutions can and are likely to win the support of the majority of countries. Based on this, the Commission should present specific legislation on September 14th.
go the spanish way
Prague has so far been particularly fond of capping gas prices for power plants, as Spain and Portugal introduced in July. “Spain’s scenario certainly applies to other countries. We would like to discuss it at the Energy Council,” a senior Czech government official confirmed to Aktuálně.cz.
Spain and Portugal have set the price of gas for power generation at €40 per megawatt hour (MWh), or about 980 crowns. The state pays subsidies to producers and the rest is covered up to the market price. This cost should be compensated by a special tax paid by businesses and households.
According to the first conclusion, the system benefits people. In August, for example, the Spaniard paid €282 (equivalent to 6,900 crowns) per MWh, even after factoring in compensation fees that he is more than a third lower than in most EU countries. Description of Hospodářské novinyGerman spot (short-term) market electricity cost €520 per MWh on Thursday after breaking the €1,000 cap earlier in the week.
The advantage of the Spanish route is that it can be introduced relatively easily without disrupting the current market. Another drawback is that someone has to pay the subsidized electricity bill.
According to the European Commission, it has approved the scheme as a one-year special state aid to Spain and Portugal, at a cost to the two countries of 8.4 billion eurosIf the same system were extended across the 27th, European authorities estimate it would cost up to €100 billion in the first eight to nine months at current prices.
No agreement on benefits
According to El País newspaper, the Spanish government wants to formally present the system to European ministers next Friday and propose that other countries adopt it. At the same time, Madrid is about to set an emission cap that will influence the final price of electricity, currently ranging from 80 to 100 euros per tonne of carbon dioxide released into the atmosphere. This requirement is also supported by several countries, including the Czech Republic, but most states oppose interfering with the emissions allowance market.
The commission also doesn’t want to interfere with the allowance, according to leaked documents. Combining the two will return balance to energy markets, according to Brussels.
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