Days after Russia’s undersea gas pipelines to Europe blew up, the European Union has passed sweeping “emergency measures” to ration energy consumption across the continent.
Following Friday’s agreement, the EU member states “will ration electricity by 5 percent at peak hours this winter, on top of previous commitments to bring down gas usage,” Politico noted. In late July, EU countries agreed to cut their natural gas demand by 15 percent.
The first-of-its-kind emergency package passed by EU’s 27 member states seeks to reduce the demand for electricity in one of the world’s most industrialized regions. On Friday, EU energy ministers agreed on “common measures to reduce electricity demand,” the EU declared in a statement on Friday.
The emergency package will allow for the ‘redistribution’ of huge profits being made by European energy companies in the wake of the Ukraine war, the EU claims. Brussels will “collect and redistribute the energy sector’s surplus revenues” to European consumers, the EU statement said.
The French TV channel Euro News reported the details of the EU emergency package:
EU energy ministers approved on Friday a first package of emergency measures in an effort to curb soaring electricity bills and coordinate member states’ responses to the energy crisis.The package, negotiated in less than a month, includes mandatory power savings, a cap on excess market revenues and a levy to capture surplus corporate profits. (…)The agreement comes as inflation in the eurozone hit double digits – 10% – for the first time in the history of the single currency, primarily driven by skyrocketing energy bills.EU energy ministers approved on Friday a first package of emergency measures in an effort to curb soaring electricity bills and coordinate member states’ responses to the energy crisis. (…)The package, negotiated in less than a month, includes mandatory power savings, a cap on excess market revenues and a levy to capture surplus corporate profits. (…)While the package represents a decisive step forward in the EU’s reaction to the energy crisis, there is broad consensus that further action is needed before the winter season arrives.
Germany, worst hit by the disruption of Russian energy supply, announced a multi-billion package for households and industry.
The relief measures come as thousands of Germans take to street against soaring fuel prices and energy bills. Germany’s industrial production has also slumped due to high energy costs. “Germany is heading directly into a recession,” German state TV ARD admitted Thursday.
The German state broadcaster Deutsche Welle reported the government relief package:
The German government on Thursday presented plans for an energy relief package worth €150-200 billion ($145-194 billion) as households and businesses are faced with rapidly rising energy bills.The new relief measures include a gas price cap that is to be financed by the Economic Stabilization Fund (WSF), which was originally set up to cushion the economic and social impacts of the coronavirus pandemic on the economy.
Having ignored former U.S. President Donald Trump’s repeated warnings over Europe’s fatal dependence on Russian energy, European leaders are finally waking up to the reality.
“We’re in an energy war with Russia,” Czech Republic’s Industry Minister Jozef Síkela said defending the EU emergency package.
With Russian Nord Stream 1 and 2 damaged beyond repair, Europe is heading into a cold and dark winter. As Europe’s gas and oil reserves dwindle, further energy rationing and cuts are to be expected, media reports suggest.
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