BRUSSELS, Oct 4 (Reuters) – The European Fee is contemplating variations of a fuel value cap together with one concentrating on fuel utilized in energy technology and a brief “versatile” restrict on costs, the EU’s head of vitality coverage mentioned on Tuesday.
European Union international locations are at odds over whether or not to cap fuel costs in an try to tug down hovering inflation, with their authorities leaders set to spar over the concept at a gathering on Friday.
EU vitality commissioner Kadri Simson mentioned Brussels’ subsequent transfer could be guided by the end result of this assembly, however that the Fee was taking a look at a number of choices to comprise fuel costs, which have surged on account of plummeting provide from Russia.
“A method ahead could be to think about a versatile pricing limitation in relation to the TTF in a means that continues to safe the provision of fuel, notably LNG, to Europe,” Simson advised a European Parliament committee assembly, referring to the Dutch Title Switch Facility fuel value.
Such a measure could be non permanent, whereas the EU works on another benchmark value to the TTF, Simson mentioned.
Another choice might be to launch an EU “framework” for a value cap on fuel used to generate electrical energy, alongside measures to make sure fuel demand doesn’t rise because of this, she mentioned.
France, Italy, Poland and 12 different EU international locations urged the Fee to suggest a broader value cap concentrating on all wholesale fuel commerce final week. Germany, Europe’s largest fuel purchaser, and the Netherlands are amongst these opposed.
Brussels has warned that such a measure would pose dangers to Europe’s vitality safety and disrupt fuel flows between EU international locations.
Russia has slashed fuel deliveries to Europe since its February invasion of Ukraine, with Moscow blaming the cuts on Western sanctions imposed in response to the invasion.
Since then, the EU has agreed emergency legal guidelines to fill fuel storage, fuel demand cuts that will turn into necessary in a provide crunch, and windfall revenue levies to lift cash to assist customers with payments. However with fuel costs nonetheless sky-high, many EU international locations say these measures don’t go far sufficient.
for Friday’s EU leaders’ summit, seen by Reuters, would ask the Fee to suggest “workable options” to scale back fuel costs by means of a cap.
Reporting by Kate Abnett and Marine Strauss; Enhancing by Lisa Shumaker
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