Greece proposes EU-wide mechanism on rising vitality prices

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ATHENS, Oct 5 (Reuters) – Greece has proposed an EU-wide mechanism for hedging towards steep fuel value fluctuations to assist households sort out rising vitality costs throughout the bloc.

Gas costs have surged to this point this yr as world economies are recovering from the coronavirus pandemic and world demand is selecting up a lot quicker than provide.

EU leaders will talk about this week whether or not the spike requires a coordinated response. learn extra

In a joint letter to the pinnacle of euro zone’s finance ministers, Paschal Donohoe, Greek finance and vitality ministers referred to as on the European Commission to contemplate establishing an EU-wide fund for hedging towards fuel value spikes.

The mechanism may draw funds from advance funds of carbon emission allowances that may be allotted to EU international locations primarily based on their heating and energy consumption and on their gross home product per capita, Greek Finance Minister Christos Staikouras and Energy Minister Kostas Skrekas mentioned within the joint letter.

The Greek proposal additionally consists of auctioning of extra allowances of carbon emissions via the EU’s emissions buying and selling system, which might produce additional revenues for EU international locations to assist them fund compensating schemes for shoppers within the winter season.

“The unprecedented spike in gas prices, and by extension in electricity prices, is a major challenge for all EU Member States that cannot be dealt with, solely, at national level,” the letter mentioned.

Greece mentioned European shoppers may face a further vitality price of 100 billion euros ($115.98 billion) within the upcoming winter.

European Union leaders will talk about later in October the concept of establishing an EU strategic fuel reserve and the decoupling of electrical energy costs from fuel costs, the pinnacle of the European Commission Ursula von der Leyen mentioned on Tuesday. learn extra
($1 = 0.8622 euros)

Reporting by Angeliki Koutantou; Editing by Alex Richardson

Greek Finance Minister Christos Staikouras pauses during an interview with Reuters at his office in the Finance Ministry in Athens, Greece, December 17, 2019. REUTERS/Costas Baltas