No EU-wide gas price cap
No general cap on gas prices at European level: Luxembourg, like other EU countries, considers that this measure would be counterproductive for gas supplies in the current context of the energy crisis.
Luxembourg is not in favor of it
No general cap on gas prices at European level: Luxembourg, like other EU countries, considers that this measure would be counterproductive for gas supplies in the current context of the energy crisis.
“Luxembourg, like a majority of Member States, is not in favor of the question of a general gas price cap which has been raised on several occasions within the framework of the European Council and the Council of Ministers of Energy. The words of Claude Turmes, Minister for Energy, are clear and confirm, once again, the position of the Luxembourg government on the subject.
To justify the latter, it is recalled that “the introduction of such a price cap could harm the ability of the European Union to withdraw supplies by gas pipelines and LNG from other supply channels, and would aggravate again the shortage (competition at the level of LNG, particularly with Asia)”.
For group purchases, Luxembourg will notify in due time
Claude Turmes (déi Gréng) responds to a parliamentary question from MP Mars Di Bartolomeo (LSAP), who mentioned the desire of the French presidency of the European Union (which ended on Thursday 30 June) to see this system implement. There was also talk of group gas purchases.
On this point, Claude Turmes recalls the communication made on May 18 by the European Commission. “The recent establishment of a European Union Energy Platform should help to secure energy supplies at fair prices and to reduce and eventually eliminate the EU’s dependence on with regard to Russian gas. The platform aims to aggregate gas demand in the EU on a voluntary basis in order to attract reliable supplies from global markets and to mitigate the effects on prices”, indicates the Minister of Energy. “Luxembourg is closely monitoring the implementation of this instrument and will decide in due time on the volume and form of its participation,” he continues.
Complementary national measures
If measures are taken at European level, the Commission believes that national measures compatible with its rules can also be beneficial for consumers. “The Commission foresees that Member States may, in the current circumstances, extend the regulation of retail prices applicable to natural gas. This is particularly important when gas plays a particular role in heating and industrial raw materials”, underlines Claude Turmes in his response to Mars Di Bartolomeo, recalling that Luxembourg has already taken a measure in this direction, which entered into force on 1 last May. This is “the assumption of natural gas network tariffs in Luxembourg by the State for all residential customers”.
To conclude, the Minister for Energy, who sounded the alarm bell at the start of the week and warned that next winter could be very complicated in terms of energy, declared that “Luxembourg supports the Commission’s communication of 18 May, and in particular the adequate preparation for a possible total cessation of Russian gas supply”.
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