MOSCOW, Oct. 23 EU authorities are considering the possibility extension of the temporary restrictions on gas prices due to the growing risks of supply reductions against the backdrop of events this fall in the Middle East and on the Balticconnector gas pipeline, the Financial Times newspaper reports, citing sources.
«Brussels is considering extending an emergency gas price cap introduced in February amid fears that conflict in the Middle East and the Baltic pipeline incident could push prices up again this winter,» the newspaper writes. referring to a presentation given to diplomats of participating countries.
The newspaper reports, citing a source, that the European Commission sees “no signs of negative consequences” after the introduction of a gas price ceiling, and now, the EC claims, the cost of the energy resource is 90% lower than last year. However, the conflict between Israel and Hamas, as well as actions on gas pipelines similar to the Balticconnector incident, could affect gas supplies this winter, sources say.
One source told the Financial Times that for these reasons the EU may be looking for ways to insure itself against similar problems in the future.
At the same time, over the weekend, a document signed by ten member countries was sent to the EC with a request to extend one of the legislative measures introduced at the height of the energy crisis, which allows EU countries to speed up the process of issuing permits for the construction of wind farms and solar power plants, the newspaper writes.
As specified, the document calls for focusing on renewable energy as a primary source that can solve the problem of Europe's dependence on energy imports.
In February of this year, the European Union finally agreed on the creation of a temporary mechanism for correcting the gas market with a floating price limit. It will be automatically launched when the monthly futures price at Europe's largest gas hub TTF exceeds 180 euros per megawatt-hour for three working days and at the same time when this price is 35 euros higher than the indicative price of LNG on world markets. The instrument was valid for a year, but the European Commission may propose its extension.