EU: Completed plan for energy independence from Russia by the end of May

By the end of May, the European Commission and the Member States should have submitted to the European Council the comprehensive and ambitious plan for the European Union’s independence from Russia, as set out in the text of the Conclusions of the two-day EU Summit on Russia. energy sector.

In particular, as the text of the Conclusions states:

The European Union will gradually eliminate its dependence on imports of Russian gas, oil and coal as soon as possible, as set out in the Versailles Declaration. The European Council therefore looks forward to the comprehensive and ambitious plan, which will be drawn up in close coordination with the Member States and submitted by the Commission to this end by the end of May 2022. National circumstances and the energy mix of Member States.

The continuing high energy prices are having an increasingly negative impact on citizens and businesses, which is further exacerbated by Russian military aggression against Ukraine. The European Council discussed how to provide further relief to the most vulnerable consumers and how to support European businesses in the short term.

The European Council:

– Calls on the Member States and the Commission to continue to make the best use of the toolkit, including the new temporary state aid framework for crisis management, as a time-limited derogation from the current situation. As the Commission suggests, temporary taxation or regulatory interventions on unexpected profits can be a useful source of funding.

– Instructs the Council and the Commission, as a matter of urgency, to contact the stakeholders in the field of energy and to discuss, if and how, the short-term options, as presented by the Commission (direct consumer support through coupons, tax rebates or through a ” centralized / single buyer model “, state aid, taxation – excise duties and VAT -, price ceilings, regulatory measures such as dispute agreements) would help reduce the price of gas and address the electricity markets, taking into account national circumstances.

– Calls on the Commission to put forward proposals that effectively tackle the problem of excessive electricity prices, while maintaining the integrity of the single market, maintaining incentives for green transition, maintaining security of supply and avoiding disproportionate budgetary costs.

In the current context of very high electricity prices, the Commission is ready to urgently assess the compatibility of the exceptional interim measures in the electricity market announced by the Member States, including to mitigate the impact of fossil fuel prices on electricity generation. , with the provisions of the Treaties and Regulation 2019/943.

In assessing this compatibility, the Commission will also ensure through an expedited procedure that the following conditions are met: the measures reduce spot prices in the electricity market for businesses and consumers and do not affect trading conditions to the extent that contrary to the common interest.

This assessment will take into account the temporary nature of the measures and the level of interconnection with the single electricity market.

The European Council also reviewed the EU ‘s immediate readiness and instructed the Council to consider the Commission’ s proposals for EU gas storage policy, taking into account the interests of Member States with significant storage capacity, in order to ensure a fair balance. The replenishment of gas reserves throughout the Union should begin as soon as possible, taking full account of national preparedness measures.

In particular, with a view to next winter, the Member States and the Commission will:

(a) establish the necessary solidarity and compensation mechanisms;

(b) work together for the voluntary joint purchase of natural gas, liquefied natural gas and hydrogen, harnessing the collective political weight and market power of the European Union and its Member States to ensure reduced prices in the negotiations. The common shopping platform It will also be open to the countries of the Western Balkans and the union’s three Eastern Partners.

c) complete and optimize gas and electricity interconnections throughout the European Union, including full synchronization of electricity networks;

(d) work to ensure security of supply for all Member States.

The text of the conclusions states that energy security and climate neutrality can only be achieved if the European Union is based on a strong and fully interconnected internal electricity market and a well-functioning coal market. The European Council discussed how to move forward with monitoring and optimizing their operation. Calls on the Commission to take the necessary initiatives by May 2022.

End, the European Union will continue to coordinate with international partners in order to ensure adequate supply and to mitigate rising energy prices.

Read the full text of the conclusions in the right column “Related Files”