Russia's Gazprom has announced an indefinite shutdown of the Nord Stream 1 pipeline which supplied gas to Europe. As if sitting on a bonfire, the European Union (EU) immediately convened an emergency meeting of the energy ministers from member countries, to find solutions to curb rising energy prices. European Commission (EC) President Ursula von der Leyen, said that the soaring electricity prices revealed limitations in the formation of the EU's electricity market. She said that the EU needs urgent intervention and structural reform of the electricity market, to partially offset the reduced gas supply from Russia to Europe.
The EC has yet to publish a detailed plan for energy market reform, but some member countries have been expressing their impatience by imposing a temporary ceiling on the wholesale price of gas. The EU has also been considering measures to separate electricity prices from the soaring cost of gas and take into account other energy sources. Some EU member states have introduced price-cutting measures. However, Brussels noted that EU members should not take separate actions but work together to bring about an overall effect.
During his first visit to the Czech Republic in the middle of last week, German Chancellor Olaf Scholz complained that the current electricity price is not reasonable, so it is necessary to change the structure to solve the situation. German Chancellor and his Czech counterpart Petr Fiala agreed that it is crucial to find a common solution for Europe to reduce the electricity price while seeking a long-term direction for the current energy crisis in Europe.
Germany's neighbour, France, has been also worried about high energy prices, record drought and unusual heat. Prime Minister Elisabeth Borne said France needs to urgently restart closed nuclear reactors to avoid the risk of a power shortage during the upcoming winter. This is mandatory because there is no immediate alternative to gas supplies from Russia, she stressed. France has 56 nuclear reactors, producing about 70% of the country's electricity. However, 32 of them are currently decommissioned for routine maintenance or to test corrosion in the reactors.
Besides restarting nuclear power plants, France is considering radical savings through the imposition of quotas on energy consumption. Speaking at a recent meeting of the Movement of Enterprises of France (MEDEF), PM Elisabeth Borne warned of the risk of energy rationing this winter, while urging companies to take measures to reduce energy consumption. She said France could be forced to impose reductions on consumers. According to her, the French government has drawn up a contingency plan, including a quota trading system that would enable companies to buy and sell power quotas, while calling on companies to come up with energy-saving plans this September.
It is not reasonable that Swedish households and companies buy Swedish electricity that is produced cheaply, but have to pay sky-high prices because many of our neighbouring countries are dependent on Russian gas,
Swedish Prime Minister Magdalena Andersson
Meanwhile, Swedish Prime Minister Magdalena Andersson proposed the idea to separate gas from the electricity pricing system to help reduce electricity prices. According to her, Sweden's government will require the separation of gas from the electricity pricing system, in the European energy market amid soaring gas prices, due to tensions between European countries and Russia. She also announced that she would work for a broad coalition within the European Union to bring down the electricity cost.
Energy problems are blowing hot winds into Europe's already dry and sweltering atmosphere. EU countries will have to find additional supplies and lower energy prices before the cold winter approaches.
