Italy advocates for a cap on natural gas prices. According to Manlio Di Stefano, the implementation of such a measure is urgent. This would support consumers, who are suffering from soaring energy prices.
Italy wants to introduce a cap on gas prices
Italy is not the only country in favor of such a measure. Moreover, it is mentioned as in the REPowerEU initiative. Spain and Portugal have already introduced a cap on the price of gas for electricity generation.
In fact, Italy has been advocating for its implementation for months. Di Stefano explains that such a measure would not affect the integration of the European energy market. Thus, he hopes to see a breakthrough on the issue.
The possibility of a price cap will most likely be discussed at the meeting of European energy ministers. The latter are looking for a solution to decouple the price of gas from that of electricity.
Mr. Di Stefano states:
“Gas supply concerns are weighing on European energy markets as Moscow arbitrarily reduces gas flows to drive up prices. The latest gas cuts [russe] across Europe and rising prices reiterate the urgent need to accelerate the gas price cap proposal.”
In fact, the price of gas continues to rise. Platts estimates the TTF gas price for the coming month at a record high of €319.98/MWh. On September 2, when it was last evaluated, it was at 206.90 €/MWh.
In addition to price caps, diversifying supply
In addition to the introduction of a price cap, Italy intends to encourage the EU to continue to diversify its gas supply. According to Italy’s Under Secretary of State for Foreign Affairs, this is the priority.
He comments:
“Today’s priority is to prepare for the coming winter by accelerating diversification of gas supply, coupled with efforts to cap gas prices to ease the burden on households and industries, as well as curb Russia’s soaring revenues.”
In fact, Italy was quick to take the lead in finding alternatives to Russian gas. The country has approached several potential partners such asAlgeria, Azerbaijan, the United States, Qatar, Congo and Mozambique.
While EU members must choose an approach that best suits the country’s situation, Joao Galamba, Portugal’s Secretary of State for Energy, stresses the key role of European unity.
He states:
“The countries have very different perspectives. Portugal’s perspective is different from Germany’s because we have made different choices. […] We are all in the same boat, so this has implications for the whole EU. […] For energy security to be in place in Europe, we need to diversify our suppliers – which Spain and Portugal have already done – and accelerate the energy transition.”
Save on gas
To face the energy crisis, the EU commits to reduce its gas consumption by 15%. To do this, J. Galamba recalls the need for massive deployment of renewable energy.
He explains:
“For every 500 MW of solar installed, we will save 1.5 TWh of gas. This is by far the fastest and easiest way for a country like Portugal to save gas. Other countries will have other options.”
Furthermore, he calls on the EU to develop European solidarity.
