French proposal – antidote to high energy prices

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Of Thanks to Floudopoulos

A mixture of measures and interventions aimed at reducing the effects of the energy crisis on consumers, presented yesterday at Ecofin the French Minister of Finance Bruno Le Maire.

The proposal, also supported by Greece, Spain and the Czech Republic, includes immediate implementation measures as well as longer-term interventions aimed at mitigating the effects of high energy prices on final consumers.

More specifically, the French proposals included in a non paper presented at Ecofin are as follows:

First, it is proposed to create an automatic stabilization mechanism that will transfer the profits of energy producers from high energy prices to consumers. France considers that governments should decouple electricity bill costs from increases in fossil fuel costs, when electricity is mainly generated by nuclear power plants and RES.

Secondly, France proposes the use of long-term contracts between RES producers and companies as an additional tool to provide price visibility.

Thirdly, it is requested that households be given access to contracts that provide price stability and predictability as well as better information on the risks involved in spot-linked invoices.

Fourth, the document calls on the EU to explore the flexibility it could provide Member States with in order to help stabilize retail prices, reduce volatility in consumers and provide the right incentives to carbonize the economy.

France also refers to the need for better coordination of national regulatory frameworks for the maintenance of gas stocks in order to enhance energy security and the more efficient operation of the gas market.

Finally, the document emphasizes that in the long run the EU should pursue energy independence by investing in all forms of non-carbon energy, including nuclear energy, in order to drastically reduce its dependence on gas-exporting countries.

“We want to protect consumers from rising energy costs that are unbearable for many households,” he said as he arrived at the Eurogroup.

At the same time, he clarified that France is not pushing for changes in the wholesale market and its proposals focus on structural issues rather than short-term difficulties.

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Source From: Capital

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