Oil & Gas News

Europe Ends Its Energy Crisis Measures

Europe, Energy, European, Gas

In a significant development, the European Commission declared on Monday that it has chosen not to extend the emergency measures put into effect last year to safeguard consumers from escalating energy costs. These measures, it noted, have been instrumental in bringing stability to the volatile European energy markets.

The previous year, 2022, witnessed the European Union, comprising 27 member nations, in the throes of a severe energy crisis, exacerbated by Russia’s invasion of Ukraine. To counteract the crisis, member states poured hundreds of billions of euros into tax reductions, financial aid, and subsidies.

The Commission, in its statement, confirmed its decision not to extend these energy crisis measures, which included strategies such as curtailing electricity demand, imposing revenue caps for power plants, and establishing retail price-setting rules.

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The Commission further observed that electricity prices have now fallen below 80 EUR/MWh, and gas prices have not only declined but also achieved a level of stability. This stability has diminished the likelihood of the electricity price surges that were a frequent occurrence throughout 2022.

Moreover, the Commission disclosed that certain elements of the emergency energy measures had been incorporated into its proposals for long-term structural adjustments in the electricity market design.

These proposals are aimed at promoting the use of fixed-price power contracts, shielding consumers from price surges, and hastening the transition to renewable energy.

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