Limited profit and demand. Czech Republic presented the Union with a recipe for the energy crisis

Limited profit and demand. Czech Republic presented the Union with a recipe for the energy crisis
Limited profit and demand. Czech Republic presented the Union with a recipe for the energy crisis

The esk presidency has prepared a list of potential measures before the energy council that can be an immediate response to the current emergency situation, according to the administrative document with a recent date. The other EU governments are then asked which of the above options they think should be applied.

The proposed intervention coincides to a certain extent with the proposals of the European Commission (EC), which, according to leaked materials from last week, supported a price ceiling for some technologies for the production of electronics, is to not use gas. Prague is now talking about a permanent price ceiling for electricity produced from coal, nuclear and renewable sources.

The European Commission’s proposal for a price ceiling for energy from other sources, not natural gas.

According to information from the Politico website, such a form of taxing foreign profits and their subsequent redistribution to help consumers has the support of Berlin.

The Czech administrative document also mentions the possibility of coordinated measures to reduce the demand for electricity along the lines of the agreement on a 15 percent limit on gas consumption. He gave points regarding the support of parts of the electricity market, the trading system with emission allowances and the separation of gas prices from electricity prices.

The last point then includes the final ceiling on the price of gas used for the production of electricity, the price ceiling for gas imported from specific areas and the final exclusion of the production of electricity from gas from the price level on the electricity market.

The President of the EC, Ursula von der Leyenov, also spoke last week about the need to break the link between the price of electricity and the price of gas, which is relevant in Europe several times over last year. It was not clear, however, whether she wanted to act in this direction in the framework of the announced crisis intervention, or later in the context of the energy market reform systems, which she had just announced.

Citing sources, Politico stated that the Czech Presidency of the Council wants the EU member states to support a set of proposals and authorize the commission to draw up formal measures that would not require the approval of the European Parliament. Prime Minister Petr Fiala announced on Monday that he had spoken with von der Leyen about the possible course of action before the highly anticipated ministerial meeting.

Before one of the Council’s questions from the Minister for Energy, I, as the prime minister of the EU presiding country, had a telephone conversation with the President of the EC @vonderleyen about the form of high energy prices at EU level. (1/2)

5. of 2022 at 7:59 pspvek archived: 5. of 2022 at 12:23

High gas prices have a consequent impact on electricity prices, which leads to considerable negative impacts on society, explains the Czech Presidency in the corrective document of the need for an EU-wide reaction.

Thus, in Europe, we will observe how a growing number of factories stop production or close completely, because high energy prices have led to the fact that they are economically unworkable, according to the Czech Presidency.

The article is in Czech

Tags: Limited profit demand Czech Republic presented Union recipe energy crisis

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