Belgium will not settle for less than the European price ceiling for gas, says Van der Straeten | Inland

A price cap on Russian gas imports through pipelines is one of five measures put forward by the European Commission for the emergency meeting of European ministers. Such a ceiling could affect Moscow’s revenues, but in the search for solutions to the sky-high energy bill, Van der Straeten sees “no added value”, even as a first step towards a broader price ceiling.

“The solution to calm the markets and bring prices down is a general price ceiling. If we implement this in a dynamic way, we can bring the price under control and guarantee security of supply,” Van der Straeten says.

The minister advocates a maximum price that is calculated in a dynamic way in function of the prices of liquid gas on the markets outside Europe, especially Asia. There is therefore no question of a really low ceiling that makes all other measures superfluous.

Skeptics of this intervention nevertheless fear that a European ceiling will divert the ships carrying liquid gas to other places, where they will get a better price. Belgium wants to absorb this through agreements with a number of emergency suppliers who commit to continue to supply Europe at the maximum price or lower, even if world prices are higher than the European ceiling. These suppliers would then be compensated with European money for the price difference.

Van der Straeten acknowledges that introducing such a ceiling is not an easy task. “It’s difficult, it’s complex and there are risks, but these are unprecedented times. For me, this is no longer a technical issue. Technicians have to work out the solution that politicians want,” she says.

Belgium has been arguing for such a ceiling for months, but so far has not been heard by the Commission. President Ursula von der Leyen did not rule out such a measure on Wednesday, however. On Friday, the main focus will be on the position of Germany, which led the resistance together with the Netherlands.

According to Van der Straeten, if a qualified majority of member states among energy ministers supports the general price cap on Friday, then the Commission should act on that political message and quickly put forward a concrete proposal, so that the ceiling becomes a reality before the winter. .

In the meantime, the minister will continue to promote joint European gas purchases in order to obtain gas at favorable price conditions in the medium and long term. The fact that the idea does not get off the ground and that Member States are now concluding bilateral deals with third countries is “very disappointing”, according to the minister.

The Commission also advocates a cap on renewable energy and nuclear power generators’ revenues. They are currently making large profits because they can sell at lower costs at the price of the last supplier necessary to meet the demand, ie suppliers of electricity from extremely expensive gas. Although this measure generates money that can be used to help households and companies with their invoices, it also does not directly affect the price.

Belgium can live with the proposal, but on the condition that work is also done on a real reform of the functioning of the electricity market.

Also see: Russia no longer supplies oil or gas at price ceiling