The European Union is analyzing a comprehensive package of measures to reduce energy prices, against the backdrop of price increases caused by the war in Iran, which have put pressure on the economy and consumers.
At the same time, European leaders are discussing structural reforms of the energy market, including massive investments in infrastructure and changes to the pricing mechanism.
Investments of 30 billion euros for an integrated energy market
President Nicușor Dan stated, after the European Council meeting, that the European Commission has proposed a 30 billion euro investment program for the modernization of energy networks and increasing interconnections between states.
The objective is to reduce transport costs and create a more integrated European market, allowing for more efficient energy circulation between countries.
The head of state emphasized that this technical component has a direct impact on bills, as network costs are included in the final price paid by consumers.
Brussels considers lower taxes and subsidies
According to Reuters, the European Commission is discussing short-term measures to limit the impact of the energy crisis, including tax cuts and subsidy schemes for industry and households.
These options are being considered in the context of rising prices for oil and gas after the attacks in the Gulf, which have affected the energy infrastructure in the region and destabilized markets.
Member states could receive more flexibility to intervene at the national level, as there is currently no common European mechanism for capping fossil fuels.
The fundamental issue: how energy prices are set
One of the main points of contention remains how electricity prices are set in Europe.
Nicușor Dan explained that the current system results in all producers being paid at the level of the most expensive source available within a certain range - usually gas-fired power plants.
This mechanism leads to situations where countries with cheap, including renewable, energy end up with high bills because the final price is dictated by the most costly source.
In this context, the European Commission is considering several options, including capping gas prices or redistributing exceptional profits made by producers of cheap energy to consumers.
Review of the ETS and pressures to relax rules
Another major subject is the emissions trading system (ETS), which directly influences the cost of energy.
The President indicated that there is a European openness to expanding exceptions for industries, issuing new certificates to reduce their prices, or even postponing certain climate targets.
Discussions come after ten states, including Romania, officially requested adjustments to the mechanism, considering that the pressure on the economy is too high.
Nuclear energy back in the spotlight
At the European level, there is a shift in perspective regarding nuclear energy.
Nicușor Dan highlighted that unlike previous years, there is now a consensus to boost this sector, and some states that intended to phase out nuclear power plants are reassessing their position and considering extending the operating lifespan.
No quick solutions at the European level for fuels
Regarding immediate measures to reduce fuel prices, European leaders have not reached a common agreement.
According to the president, the only rapid tools remain at the national level, such as using strategic reserves, while discussions at the European level continue without a concrete decision.
Nicușor Dan emphasized that European decisions result from complex negotiations between states with different interests, rather than from imposed directives.
Discussions on energy market reform and price reduction will continue at the next European Council in June, where clearer solutions are expected to take shape.