Europe faces terrible winters without gas price cap, minister warns

Energy Minister Van der Straeten stated the hyperlink between gas costs and electrical energy costs wanted pressing reform.

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Belgian Energy Minister Tinne Van der Straeten warned that the following 5 to 10 winters in Europe will likely be “terrible” except the European Union strikes to swiftly impose a price cap on runaway gas costs.

“The next 5 to 10 winters will be terrible if nothing is done,” Van der Straeten stated through Twitter on Sunday. “We must act at the source, at [the] European level, and work on freezing gas prices.”

Van der Straeten stated a price cap may assist to cut back power payments by 770 euros ($764).

Her feedback come amid rising requires the 27-nation bloc to urgently fight skyrocketing power payments for households and companies.

Gas costs have soared to report highs within the wake of Russia’s onslaught in Ukraine, triggering an unprecedented barrage of punitive sanctions in opposition to the Kremlin. This has additionally elevated electrical energy costs.

Gas is a significant supply of electrical energy era.

Belgium’s Van der Straeten stated the hyperlink between gas costs and electrical energy costs wanted pressing reform.

“The European energy market is failing and urgently needs reform,” Van der Straeten stated. “This is no longer tenable for many families and companies. Electricity is produced as cheaply as last year but sold at record prices. By reforming, we are tackling exuberant excess profits.”

She added, “The time for talking is over, now it is time to decide.”

‘Stop the insanity’

European governments are at the moment scrambling to fill underground storage services with gas provides so as to have sufficient gasoline to maintain houses heat throughout the coming months.

Russia — which provided roughly 40% of the EU’s gas final 12 months — has drastically decreased flows to Europe in latest weeks, citing defective and delayed tools.

Germany considers the provision lower to be a political maneuver designed to sow uncertainty throughout the EU and enhance power costs amid the Kremlin’s conflict in Ukraine.

Austrian Chancellor Karl Nehammer backed requires an EU-wide price cap on surging power costs.

“We must finally stop the madness that is taking place in energy markets. And that can only happen through a European solution,” Nehammer stated in an announcement on Sunday, in line with Reuters.

“Something has to happen at last. This market will not regulate itself in its current form. I call on all the EU 27 [member states] to stand together to stop this price explosion immediately,” he added.

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