Rising gas prices threaten to exacerbate an energy shortage in the European Union. After European representatives accused the Russian "Gazprom" of reducing gas supplies, America warned against "manipulation" of prices, while Austria denounced the "excessive dependence" on Russian gas.
Natural gas prices in Europe have been rising for months. In some countries, consumers are already feeling the effects. A study published by the European Federation of Trade Unions on Wednesday (September 22, 2021) estimated that nearly 3 million poor European workers "will not be able" to pay heating bills in the fall and winter.
European Union Energy Commissioner Kadri Simson said Wednesday, before a meeting of EU energy and transport ministers, that the commission was "closely watching" the sharp rise in energy prices and was discussing with member states "ways" to curb it.
"We will discuss with the ministers ways to meet this challenge (...) The Commission is monitoring the situation closely, and discussing the means we have" to limit this rise, the Energy Commissioner said before the meeting in Slovenia, the country that holds the rotating presidency of the European Union.
The cost of natural gas is the main driver of the rise in energy prices, which were about a quarter higher in August compared to last year. Before the meeting, the Spanish government asked the European Commission to set rules that national governments could follow to counter price hikes.
Electricity prices have recently risen due to the rise in international gas prices, in many European Union countries, especially in Spain. In the UK, gas prices hit a record high last week, with prices rising six times in one year. The United States is also witnessing a rise in energy prices, but it is protected as a shale gas producer.
“You must be prepared to confront the manipulators.”
For its part, US Energy Secretary Jennifer Granholm warned against "manipulating" gas prices in Europe through "storage or failure to produce adequate supplies" during the meeting of European Union ministers to discuss the shortage of gas.
"The United States has been clear that we and our partners must be prepared to continue to defend (our interests) when there are parties who may be manipulating supplies for their own good," Granholm told reporters during a visit to Warsaw on Wednesday. "We take this matter very seriously and stand by our European allies to ensure they have adequate and affordable supplies of gas this winter," she said.
For his part, Lithuanian Energy Minister Dainius Kreves said, "We need cooperation ... at the European level to protect our citizens," while his Austrian counterpart Leonor Geoffsler denounced "excessive dependence (from the European Union) on Russian gas." She said that the solution to the problem of high gas prices is the rapid transition to renewable energies, adding that this would lead, for example, to independence from Russian gas imports.
A group of about 40 members of the European Parliament asked the Commission in mid-September to conduct an investigation against the Russian energy giant Gazprom, accusing it of reducing gas supplies through Ukraine in order to push Germany to agree to start the Nord Stream 2 gas pipeline activity faster via The Baltic Sea, fueling European price hikes. Gazprom has denied the accusation of market manipulation.
0 Comments