Eu Fee President Ursula von der Leyen says the time is now for the bloc to impose a value cap on Russian pipeline fuel.
John Thys | AFP | Getty Pictures
The Eu Union will release a “deep and complete reform” of the electrical energy marketplace, Eu Fee President Ursula von der Leyen mentioned Wednesday.
In her annual State of the Union speech, delivered on the Eu Parliament construction within the French town of Strasbourg, von der Leyen mentioned the marketplace was once designed at the concept of advantage order, and no longer have compatibility for objective.
“Shoppers will have to take advantage of cheap renewables,” she mentioned, “So we need to decouple the dominance of the cost of fuel on the cost of electrical energy.”
Von der Leyen additionally mentioned there have been a shift from pipeline fuel to greater use of liquefied herbal fuel, however the benchmark used within the fuel marketplace, TTF, had no longer tailored.
She mentioned the fee would paintings on creating a extra consultant benchmark for buying and selling that displays this modification, and in addition ease liquidity pressures on power providers via amending laws on collaterals and taking measures to restrict intraday worth volatility.
An power disaster of each provide and pricing in Europe got here to a head previous this month as Russia indefinitely halted fuel flows to Europe via the important thing Nord Circulate 1 pipeline.
EU power ministers met Friday to speak about a five-point plan which incorporates a worth cap on Russian fuel, a providence tax on fossil gas firms’ earnings, a restrict on revenues of renewable and nuclear firms, a compulsory goal for decreasing height hour power use via 5% and emergency credit score strains for energy firms.
Russian President Vladimir Putin threatened to overlook present contracts and close off power provides to Europe utterly after the plan was once introduced.
Addressing the providence tax and income cap plans, von der Leyen mentioned that whilst earnings weren’t essentially a foul factor, “it’s mistaken to obtain bizarre document revenues and earnings taking advantage of conflict and at the again of our customers.”
“In those instances, earnings should be shared and channeled to people who want it maximum.”
She mentioned thousands and thousands of families and companies around the Eu Union have been suffering with worth rises and have been nervous for the longer term.
Tax on fossil gas earnings would supply 140 billion euros ($139.8 billion) to be cut up between member states for power invoice beef up, she added.
Von der Leyen mentioned a concern for the bloc should be on finishing its dependency on Russian fuel, with imports from the rustic already falling from 40% remaining yr to 9% now.
“We now have agreed to enroll in garage, we are actually at 84%, overshooting our objectives,” she mentioned.
However, she persisted: “This may not be sufficient. We need to diversify clear of Russia to dependable providers like the USA, Norway, Algeria and others,” in addition to making an investment extra closely in renewables and LNG terminals.
‘Putin will fail’
Ukrainian first woman Olena Zelenska was once in attendance in Strasbourg as a visitor of honor, and was once given a status ovation via parliamentarians.
Zelenska tweeted that she sought after to “in my view thank” von der Leyen for her contribution to Ukraine turning into a candidate for EU club.
Von der Leyen, who delivered the speech dressed in the Ukrainian flag colours of yellow and blue, made impassioned statements at the conflict, pronouncing Ukraine had faced the “face of evil” following the Russian invasion on Feb. 24.
“A lot is at stake, no longer only for Ukraine however for all of Europe and the sector at massive,” she mentioned, paying tribute to the sufferers of the conflict, which she mentioned was once additionally an assault on Europe’s financial system, power, values and long term.
“It’s about autocracy towards democracy and I stand right here with the conviction that with the vital braveness and cohesion Putin will fail and Ukraine and Europe will be triumphant.”
“As of late braveness has a reputation and that identify is Ukraine. Braveness has a face and that face is the face of Ukrainian women and men who’re status as much as Russia aggression.”
Kyiv forces have reclaimed 1000’s of kilometers of Russian-occupied land in fresh days, resulting in fears over Moscow’s subsequent transfer. Russia introduced intense shelling at the Kharkiv area on Saturday.
Von der Leyen additionally mentioned sanctions towards Russia have been “right here to stick” and it was once the “time for unravel and no longer appeasement.”
3 quarters of Russia’s banking sector have been bring to a halt from global markets, just about 1,000 global firms had left the rustic, its manufacturing of automobiles fell via 75% in comparison to remaining yr and its “business is in tatters,” with its army stripping family home equipment for portions because of a semiconductor scarcity, she famous.
She added that she sought after to increase “seamless get admission to” to the EU unmarried marketplace to Ukraine and would commute to Kyiv Wednesday to speak about this with Ukrainian President Volodymyr Zelenskyy.