Without saving gas, a dark winter threatens

by time news

No matter how the EU intends to curb gas prices through market interventions, without a sharp reduction in consumption they will fizzle out. It’s not looking good at the moment.

Spain and Portugal led the way – will the rest of the EU follow suit? Before the beginning of the summer, the two Iberian states introduced a model for curbing electricity prices, which, to put it simply, subsidizes the price of gas for electricity generation by the state. For the time being, Spanish and Portuguese private and large customers are relatively protected from the caprioles of the international gas markets (we will report later on the impact on the budgets of the two countries).

The other side of the coin: While the Union committed in July to save 15 percent of its gas consumption by the end of March compared to the average of the previous five years, consumption in Spain increased in June and July (see chart). Several other Member States are also a long way from the 15 percent target: and this is before the start of the heating season, which in the event of a severe winter will greatly reduce the willingness of private households to use less gas than before.

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