BRUSSELS, Oct 24 (Reuters) – The European Fee has warned nations that an EU-wide cap on the value of gasoline used to supply electrical energy might trigger a rise in gasoline use and exports of EU-subsidised electrical energy, based on a doc seen by Reuters.
European Union nations’ vitality ministers meet on Tuesday to debate choices to cap EU gasoline costs, with nations nonetheless cut up over whether or not and the way to do that after discussing it for weeks.
The doc exhibits that the Fee shared with nations an evaluation of a value cap for gasoline used to supply energy – a scheme that Spain and Portugal launched this summer time after Russia’s invasion of Ukraine and subsequent cuts to EU gasoline provides pushed up vitality prices.
Rolling this out EU-wide – an concept France has championed – might see gasoline EU demand rise by as much as 9 billion cubic metres, the doc stated.
It might additionally require measures to stop the ensuing cheaper electrical energy from flowing to non-EU nations like Britain and Switzerland that should not have the value cap, the doc stated.
Germany and the Netherlands have warned that value caps to make gasoline cheaper might trigger a spike in consumption at a time when nations are racing to avoid wasting gas and change Russian deliveries. Russia provided 155 billion cubic metres of gasoline to the EU earlier than the invasion.
The Fee stated if market gasoline costs have been 180 euro per megawatt hour for a 12 months, the scheme might yield a internet good thing about 13 billion euros ($12.8 billion) and assist to tame inflation – however that the advantages wouldn’t be evenly unfold. Fuel costs have tumbled far beneath that degree in latest days, amid gentle climate and brimming storage tanks.
France – a internet importer of gas-fuelled electrical energy – can be the most important beneficiary of the facility sector gasoline value cap, the doc stated.
Germany, the Netherlands and Italy, who produce vital volumes of gas-fuelled energy, would face the very best prices to fund the scheme, stated the doc, which didn’t specify how the EU-wide mechanism can be financed.
($1 = 1.0131 euros)
Reporting by Kate Abnett; Enhancing by Lisa Shumaker
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