Energy ministers to thrash out EU approach to gas and electricity crisis
EU energy ministers will gather for emergency talks in Brussels on Friday to thrash out common measures in an effort to counter a gas and electricity price crisis that threatens to make energy bills unaffordable for households and businesses and tip Europe into recession.
The European Commission president, Ursula von der Leyen, has set out a five-point plan, which includes a price cap on Russian gas that is likely to draw strong opposition from some member states.
Her proposals also include a windfall tax on oil and gas profits; an energy savings drive; and a cap on the cost of low-carbon electricity. They were published the day before Britain’s new prime minister,Liz Truss, unveiled a £150bn freeze on energy bills.
A senior diplomat said there was no majority in favour of capping Russian gas, a measure designed to limit Kremlin revenues used to finance the war in Ukraine.
Vladimir Putin has dismissed the idea as stupid and threatened to completely cut energy supplies to Europe if the plan goes ahead. Because Russia now only supplies 9% of the EU’s gas imports, down from 40% before the war, the European Commission believes it can manage the risk of a total shutdown.
But a trio of EU member states that import a large amount Russian gas from Russia – Austria, Hungary and Slovakia – oppose the idea. Hungary, which is highly dependent on gas from Russia recently signed a contract with the Russian state energy firm Gazprom for extra supplies, argues the price cap is a sanction and should only be decided by unanimity, giving Budapest veto power over the decision.
On the other hand, a dozen other countries, including France, Italy and Poland, support a cap, but argue it should apply to all imported forms of the fuel, including
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