Tinne Van der Straeten, Belgium’s Energy Minister, has warned that the next 5 to 10 winters in Europe will be unless the European Union acts quickly to establish a price ceiling on soaring gas prices.
EU countries are scrambling to stockpile gas supplies in underground storage facilities in order to keep homes warm in the coming months.
In recent weeks, Russia, which supplied nearly 40% of the EU’s gas last year, has substantially decreased deliveries to Europe.
A price cap, according to Van der Straeten, might help lower energy bills by 770 euros ($764).
Her remarks come amid mounting pressure for the EU’s 27 member states to act quickly to address skyrocketing energy expenses for individuals and businesses.
Gas prices have risen to all-time highs in the aftermath of Russia’s offensive in Ukraine, sparking an unprecedented volley of punitive penalties against the Kremlin. This has also resulted in higher electricity rates.
Gas is a major provider of energy for electricity.
According to Van der Straeten of Belgium, the relationship between gas and electricity pricing requires immediate modification.
The European energy market is failing and urgently requires reform, according to Van der Straeten. This is no longer sustainable for many families and businesses.” Electricity is produced at the same low cost as last year but sold at record highs. We are addressing exorbitant excess earnings by reforming.
Austrian Chancellor Karl Nehammer has backed proposals for a price ceiling on rising energy prices across the EU.
We must finally put an end to the lunacy that is occurring in the energy markets.” And that can only happen through a European solution,” Nehammer said in a statement published by Reuters on Sunday.
At some point, something needs to happen. call on all 27 EU [member states] to work together to put an end to this price explosion immediately, he continued.