The Diplomat
The President of the Government, Pedro Sánchez, has insisted before the rest of the EU leaders that the rise in energy prices requires “extraordinary and innovative measures” at European level. Despite the fact that the Council has opted to postpone any decision to future meetings, Moncloa believes that the conclusions of the Brussels meeting are “in line with Spain’s request”.
“We are facing an unprecedented crisis that requires extraordinary and innovative measures to control the energy price situation,” Sánchez warned in Brussels, after participating in the European Council on October 21-22. “We have been working in recent weeks on this issue and our country is being enormously proactive at all levels, with concrete proposals to address the situation,” he added. Between 2019 and 2021, Moncloa recalled, the wholesale price of gas has increased by 429% and that of electricity has increased by 230%.
Specifically, Sánchez referred to the proposal submitted last September by Spain to the European Commission, which provides, as explained yesterday by the head of the Executive himself, measures to prevent speculation in the carbon and emission rights markets, the development of a joint European platform for the purchase of natural gas (similar to the unified European scheme for the purchase of vaccines against COVID-19) to constitute a European strategic gas reserve, reforms of the wholesale electricity market and the promotion of forward power purchase contracts in the industrial sector.
As Moncloa indicated yesterday in a press release, the issue of energy prices was dealt with in the Council “at Spain’s proposal” and the conclusions of the European leaders are “in line with Spain’s request”.
Specifically, and after considering the impact of price rises on citizens and businesses, especially on “vulnerable citizens and SMEs, which are struggling to recover from the COVID-19 pandemic”, the Council has asked the Commission to “study the functioning of the gas and electricity markets, as well as the Emissions Trading Scheme (ETS) market, with the help of the European Securities and Markets Authority (ESMA)”. “Subsequently, the Commission will assess whether certain trading practices require further regulatory action,” it continued.
The Council also called on “Member States and the Commission to urgently make the best use of the package to provide short-term help to the most vulnerable consumers and support European businesses”, and on the Commission and the Council to “promptly consider medium and long-term measures that contribute to affordable energy for households and businesses, increase the resilience of the EU energy system and the internal energy market, provide security of supply and support the transition to climate neutrality”.
“At the extraordinary session of the Transport, Telecommunications and Energy (Energy) Council on 26 October 2021, this work will be undertaken immediately,” the European leaders continued. Spain will be represented at that meeting by the Minister for Ecological Transition, Teresa Ribera. “The European Council will closely monitor developments and will return to this issue in December,” the text concludes.
