Governments across Europe are scrambling to cushion citizens & industries from soaring energy prices and have so far allocated a total of about EUR 280 billion to helping reduce the impact of the crisis, but pressure is mounting for joint action beyond a voluntary 15% cut in consumption agreed in July, and the EU will hold an emergency summit on 9 September to discuss measures including a bloc wide price cap. Options include an emergency block wide price cap and decoupling of electricity and gas prices, a move backed by several member states and adopted as an Iberian exception this summer by Spain and Portugal with the aim of slashing electricity bills. Under the present EU-wide mechanism, electricity prices are pegged to the price of the most expensive fuel used in power generation, which is currently natural gas, whose price has surged since Russia’s invasion of Ukraine, sending electricity prices soaring too. The member states are now to discuss the paper at a technical level. On 9 September, the EU energy ministers could then discuss the proposals at a special meeting.According to an informal discussion paper, the European Commission is considering skimming off the currently particularly high profits of the operators of nuclear power plants and wind energy and solar parks and distributing the income to consumers via the Member States. In addition, the Commission wants to set incentives to reduce the demand for electricity. This can be implemented for companies and private consumers through direct compensation for not using electricity. In mid-September, the EU Commission wants to present a single market emergency instrument with which it can control the supply of individual products in immediate crises, but also in critical situations. A corresponding draft provides that the Commission can, in extreme cases, require the Member States to build up concrete stocks of important goods within a certain period of time. If these stocks were not sufficient, EC could also make recommendations for the distribution of the reserves. If there is a risk of delivery bottlenecks, the EU Commission wants to be able to prescribe a reorganization of the supply chains and production lines and the construction of new production facilities. In an emergency, EC wants to intervene directly in the production of important goods.Encouragingly, the continent’s gas storage reservoirs, which will be critical to getting through the winter, have reached the commission’s 80% capacity target two months ahead of schedule, and Spain, Italy, Germany and France have exceeded it.European countries are implementing very different measures to safeguard consumers and businesses against high energy prices while ensuring energy supply security throughout the winter.Germany has been overly dependent on Russian supplies due to its very close energy ties with pre-war Russia. However, difficulties emerged from record oil and food prices for businesses dealing with costlier expenses, as well as German households whose incomes have dropped while grappling with high inflation. To minimize the impact of rising energy costs on household consumers, the German government has paid each taxpayer a one-time sum of EUR 300. Fuel taxes have been temporarily reduced and citizens have been provided with unlimited public transportation passes valid on train, bus and metro for EUR 9 per month between June and September. Energy-saving measures have been extended to public institutions. Public buildings will not be heated by more than 19 degrees Celsius and hot water will be switched off in these buildings, except for hospitals and social facilities. Corridors and little-used rooms in administrative buildings will not be heated. Lights on government buildings and monuments will be shut off if they are used only for purely aesthetic reasons. The plan also introduces new restrictions for businesses, forcing them to turn off lights in shop windows overnight. They will be required to close doors while heating their shops to improve energy efficiency. Several coal-fired power plants that were due to be shut down will now be reactivated to save gas for the winter. The government also started the process to extend the lifespan of the country’s last three nuclear power plants.Following a France government decree announced in June, an extension until the end of the year has been applied to the freeze in natural gas prices at October 2021 levels. Electricity wholesale price rises have been limited to 4% for one year. An initiative aiming to reduce energy consumption by 10% has been adopted and heating and cooling degrees in public buildings have been readjusted. Low-income French households have received fuel aid in the form of a EUR 100 inflation bonus. Grance has also regulated the use of air conditioning. Government offices will only be able to switch on air conditioning if it is hotter than 26 Celsius indoors, and a limit will apply to a maximum of 19 degrees Celsius. Shop window lighting must be turned off between 01.00 AM and 06.00 AM. Public service announcements have been devised to encourage energy savings.Millions of UK citizens have started to receive extra financial help to cope with rising energy prices. Lower-income households began receiving the first batch of a GBP 650 cost of living allowance in July. And in October, GBP 400 energy discount will be distributed in six monthly installments. In autumn, pensioners will receive an additional one-time payment of GBP 300. In a sharp policy change, the government has declared its support for shale gas fracking. The operational periods of some coal-fired electricity plants, which had been scheduled for closure, have been extended. It is anticipated that the new UK prime minister, who will be appointed on 5 September, will determine new measures to cope with rising costs, ensure energy savings and secure supplies.Fuel taxes have been slightly reduced and financial support will be given to low and middle-income families for their bills with a EUR 200 bonus payment in Italy. The government signed a natural gas supply deal with Algeria. Subsidies will be given for solar energy investments and energy company contracts have been shielded against unilateral alterations. According to the government’s draft emergency savings plan, household heating will decrease by 2 degrees Celsius while street lighting at night will reduce by 40% and shops are required to close early.Spain has issued a decree, ordering businesses to curb air conditioning to 19 degrees Celsius in the summer and heating to 27 degrees Celsius in the winter. The government also ordered shops to turn off their shop fronts from 10.00 PM. Also, automatic locks will be installed to stop customers from leaving doors open while heating systems are on. From October, VAT on natural gas will drop from 21% to 5%. A natural gas price ceiling has been adopted for electricity generation and citizens and businesses have been advised to apply energy-saving measures.Social energy tariffs for low-income citizens have been extended and expanded to include more households in Belgium. People using heating oil for home heating have received a payment of EUR 225. Along with a temporary reduction in VAT on electricity from 21% to 6% between April 1 and July 1, all Belgian households have been given a one-off heating cheque of EUR 100. Special consumption taxes on diesel and gasoline have been lowered and VAT rates have been decreased on a variety of goods, including heat pumps, solar panels and thermal insulation materials. All lights in public buildings have been turned off between the hours of 7.00 PM and 6.00 AM. Temperatures in buildings will range between a minimum of 19 degrees Celsius and a maximum of 27 degrees Celsius. The operational lifespans of two nuclear power stations, which had been scheduled for closure in 2025, have been extended by ten years. The operational periods of two additional reactors have also been extended.The Swiss government has urged people to save energy to prevent an energy crisis over the winter. Residents have been urged to cut down household heating, use less hot water, and turn off any superfluous electrical appliances.The Serbian government has prepared a plan to reduce energy consumption by 15% relative to last year. The use of decorative lights and street lighting has been reduced. A project has been initiated to expand the use of solar panels, led lighting, improves building insulation and includes recommendations for energy savings. Further discounts have been offered for households that lowered electricity consumption compared to last year.
Governments across Europe are scrambling to cushion citizens & industries from soaring energy prices and have so far allocated a total of about EUR 280 billion to helping reduce the impact of the crisis, but pressure is mounting for joint action beyond a voluntary 15% cut in consumption agreed in July, and the EU will hold an emergency summit on 9 September to discuss measures including a bloc wide price cap. Options include an emergency block wide price cap and decoupling of electricity and gas prices, a move backed by several member states and adopted as an Iberian exception this summer by Spain and Portugal with the aim of slashing electricity bills. Under the present EU-wide mechanism, electricity prices are pegged to the price of the most expensive fuel used in power generation, which is currently natural gas, whose price has surged since Russia’s invasion of Ukraine, sending electricity prices soaring too. The member states are now to discuss the paper at a technical level. On 9 September, the EU energy ministers could then discuss the proposals at a special meeting.According to an informal discussion paper, the European Commission is considering skimming off the currently particularly high profits of the operators of nuclear power plants and wind energy and solar parks and distributing the income to consumers via the Member States. In addition, the Commission wants to set incentives to reduce the demand for electricity. This can be implemented for companies and private consumers through direct compensation for not using electricity. In mid-September, the EU Commission wants to present a single market emergency instrument with which it can control the supply of individual products in immediate crises, but also in critical situations. A corresponding draft provides that the Commission can, in extreme cases, require the Member States to build up concrete stocks of important goods within a certain period of time. If these stocks were not sufficient, EC could also make recommendations for the distribution of the reserves. If there is a risk of delivery bottlenecks, the EU Commission wants to be able to prescribe a reorganization of the supply chains and production lines and the construction of new production facilities. In an emergency, EC wants to intervene directly in the production of important goods.Encouragingly, the continent’s gas storage reservoirs, which will be critical to getting through the winter, have reached the commission’s 80% capacity target two months ahead of schedule, and Spain, Italy, Germany and France have exceeded it.European countries are implementing very different measures to safeguard consumers and businesses against high energy prices while ensuring energy supply security throughout the winter.Germany has been overly dependent on Russian supplies due to its very close energy ties with pre-war Russia. However, difficulties emerged from record oil and food prices for businesses dealing with costlier expenses, as well as German households whose incomes have dropped while grappling with high inflation. To minimize the impact of rising energy costs on household consumers, the German government has paid each taxpayer a one-time sum of EUR 300. Fuel taxes have been temporarily reduced and citizens have been provided with unlimited public transportation passes valid on train, bus and metro for EUR 9 per month between June and September. Energy-saving measures have been extended to public institutions. Public buildings will not be heated by more than 19 degrees Celsius and hot water will be switched off in these buildings, except for hospitals and social facilities. Corridors and little-used rooms in administrative buildings will not be heated. Lights on government buildings and monuments will be shut off if they are used only for purely aesthetic reasons. The plan also introduces new restrictions for businesses, forcing them to turn off lights in shop windows overnight. They will be required to close doors while heating their shops to improve energy efficiency. Several coal-fired power plants that were due to be shut down will now be reactivated to save gas for the winter. The government also started the process to extend the lifespan of the country’s last three nuclear power plants.Following a France government decree announced in June, an extension until the end of the year has been applied to the freeze in natural gas prices at October 2021 levels. Electricity wholesale price rises have been limited to 4% for one year. An initiative aiming to reduce energy consumption by 10% has been adopted and heating and cooling degrees in public buildings have been readjusted. Low-income French households have received fuel aid in the form of a EUR 100 inflation bonus. Grance has also regulated the use of air conditioning. Government offices will only be able to switch on air conditioning if it is hotter than 26 Celsius indoors, and a limit will apply to a maximum of 19 degrees Celsius. Shop window lighting must be turned off between 01.00 AM and 06.00 AM. Public service announcements have been devised to encourage energy savings.Millions of UK citizens have started to receive extra financial help to cope with rising energy prices. Lower-income households began receiving the first batch of a GBP 650 cost of living allowance in July. And in October, GBP 400 energy discount will be distributed in six monthly installments. In autumn, pensioners will receive an additional one-time payment of GBP 300. In a sharp policy change, the government has declared its support for shale gas fracking. The operational periods of some coal-fired electricity plants, which had been scheduled for closure, have been extended. It is anticipated that the new UK prime minister, who will be appointed on 5 September, will determine new measures to cope with rising costs, ensure energy savings and secure supplies.Fuel taxes have been slightly reduced and financial support will be given to low and middle-income families for their bills with a EUR 200 bonus payment in Italy. The government signed a natural gas supply deal with Algeria. Subsidies will be given for solar energy investments and energy company contracts have been shielded against unilateral alterations. According to the government’s draft emergency savings plan, household heating will decrease by 2 degrees Celsius while street lighting at night will reduce by 40% and shops are required to close early.Spain has issued a decree, ordering businesses to curb air conditioning to 19 degrees Celsius in the summer and heating to 27 degrees Celsius in the winter. The government also ordered shops to turn off their shop fronts from 10.00 PM. Also, automatic locks will be installed to stop customers from leaving doors open while heating systems are on. From October, VAT on natural gas will drop from 21% to 5%. A natural gas price ceiling has been adopted for electricity generation and citizens and businesses have been advised to apply energy-saving measures.Social energy tariffs for low-income citizens have been extended and expanded to include more households in Belgium. People using heating oil for home heating have received a payment of EUR 225. Along with a temporary reduction in VAT on electricity from 21% to 6% between April 1 and July 1, all Belgian households have been given a one-off heating cheque of EUR 100. Special consumption taxes on diesel and gasoline have been lowered and VAT rates have been decreased on a variety of goods, including heat pumps, solar panels and thermal insulation materials. All lights in public buildings have been turned off between the hours of 7.00 PM and 6.00 AM. Temperatures in buildings will range between a minimum of 19 degrees Celsius and a maximum of 27 degrees Celsius. The operational lifespans of two nuclear power stations, which had been scheduled for closure in 2025, have been extended by ten years. The operational periods of two additional reactors have also been extended.The Swiss government has urged people to save energy to prevent an energy crisis over the winter. Residents have been urged to cut down household heating, use less hot water, and turn off any superfluous electrical appliances.The Serbian government has prepared a plan to reduce energy consumption by 15% relative to last year. The use of decorative lights and street lighting has been reduced. A project has been initiated to expand the use of solar panels, led lighting, improves building insulation and includes recommendations for energy savings. Further discounts have been offered for households that lowered electricity consumption compared to last year.
