The package of proposals proposed by the Commission to study and submit for energy also includes the proposal of Kyriakos Mitsotakis – Six-point plan – for the imposition of a temporary ceiling on gas prices, as well as their transfer to electricity prices.
More specifically, in his proposal, Mr. Mitsotakis emphasizes that the prices that are being formed at the moment do not correspond to the real situation prevailing in the market, given that there is no problem of adequacy or supply.
In this context, Mr. Mitsotakis first proposes the imposition of a price ceiling on the TTF price of natural gas.
There should also be specific daily trading limits on the price, similar to those in stock exchanges. This will allow the variability in the range of the TTF value to be reduced, for example by 10%.
It is also proposed to have an extraordinary price determination, which will be valid only in case of emergency, ie in case of a problem with the flow of natural gas from Russia.
At the same time, according to Mr. Mitsotakis, there is a need to impose a ceiling on profit margins. For the wholesale electricity markets this percentage could be 5%.
Another possibility is to allow only the transaction with physical delivery, which can also be imposed for a period of time in order to avoid market manipulation.
Finally, another tool is to strengthen the liquidity of the gas market through the coupling of the US, EU and Asian markets.
This could be achieved by promoting cooperation with China on LNG shipments and possibly introducing shipping cost limits to discourage speculation.
“A European protection net is needed for consumers, businesses, farmers from energy increases”
Stressing that a European response is needed to protect consumers, businesses and farmers from fluctuations in gas and electricity prices, he accompanied his statement to the informal European Council.
“We are here in Versailles, at the extraordinary European Council, in the shadow of the greatest war the European continent has experienced since the end of World War II. First of all, I want to express my disgust at what happened yesterday in Mariupol: the tragic images that The bombing of a maternity hospital, and to call once again for a ceasefire as soon as possible, but also for humanitarian corridors so that those who want to leave the war zones can do so safely. to reaffirm the unity of the European Union, to reaffirm our determination to continue and to step up – if necessary – the framework of sanctions, in order to exercise the maximum possible pressure on Russia to come to the negotiating table “, noted Kyriakos Mitsotakis. “But we will also discuss the implications of developments, of geopolitical developments, in the energy market. I would like to remind you that the day before yesterday I sent a letter to the President of the European Commission requesting European intervention to put a ceiling on wholesale gas prices. A European response is needed to protect consumers, businesses, farmers from fluctuations in gas prices and, consequently, electricity, which are not dictated by supply and demand rules but are the result of purely speculation in the gas market. “, pointed out.
The Prime Minister also focused on the agenda of Europe’s strategic autonomy.
“Greece is a country that has been at the forefront of this debate. We believe in the need for Europe to align its geopolitical power with its economic potential. And I would say that the developments in Ukraine – the last 14 days – have been essentially the “Violent ‘adulthood’ of our continent. And at the moment there is the possibility and, I think, the consensus is being formed so that we can move much faster, much more effectively, much more effectively in this field,” he stressed. “And of course to exclude part or possibly all defense spending from deficit calculations, so that countries like Greece, which have historically spent more on defense spending than other European countries, are not penalized for this strategic choice.” , added Mr. Mitsotakis.
Source: Capital

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