The energy crisis dominated the meeting on Friday 27th in Brussels, with the French president, Emmanuel Macron, defining the reduction of gas prices as the main objective and announcing concrete measures such as the creation of a “new standard for gas prices ” and the extension of the Iberian mechanism to the entire European Union.
“The first objective is to lower the price of gas and for that we need a more honest thermometer. We have to establish a new price standard that allows us to have a real-time indicator that is more honest than the market’s TTF index. We reached an agreement on the creation of a new index,” Macron revealed.
In addition, the French head of state stated that there is also a will to lower the price of electricity and, therefore, they decided to expand the Iberian mechanism.
“We will have to assess the advantages and disadvantages of this mechanism. This is what allowed us, in Spain and Portugal, to have an impact that was immediately measured. There is difficulty in extending this mechanism to a European level, but it creates value and is positive for all Europeans. All the analyzes show that it will make it possible to lower the price of electricity and consolidate the fall in the price of gas. The model depends on the country’s own electricity production system”, explained the French president.
The president of the European Commission, Ursula von der Leyen, said that several steps were proposed with the aim of ending speculation and alleviating the financial costs of energy at the European Union level.
“We will also work to create a second complementary index that better reflects market mobility. This shows how much speculation there is in these price spikes that we want to moderate. We are seeing a partial segmentation of gas, the best way to balance prices among all member states,” added Ursula von der Leyen.
Source: TSF
