The European Union is set to take emergency action to reform the electricity market and halt the significant rise in prices as they soar due to the Russian invasion of Ukraine.
Energy ministers from EU member states will be holding urgent talks in Brussels on September 9th. EU Commission President Ursula Von der Leyen said that the ‘skyrocketing electricity prices are now exposing the limitations of our current electricity market design.’
High gas prices have also been blamed on disruptions to the nuclear and hydroelectric sectors as climate change continues to batter countries with heatwaves.
Germany’s Chancellor Olaf Scholz also called for action, saying at a press conference after talks with Czech Prime Minister Petr Fiala, that they are in complete agreement that rapid action has to be taken.
The European Commission is yet to publish a detailed plan for market reform, but a temporary cap on wholesale gas prices is being called for by some member states.
Officials are considering measures to split the electricity price setting from the gas price and consider alternative sources of energy. As some other member states launch their own price reduction measures, Brussels is calling fr a more united front as this would be more effective, it claims.
This comes as all EU blocs attempt to become independent from Russian oil and gas after the latter’s war against Ukraine.
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