Norway warns of worsening EU crisis with gas price cap
Norway's ministry warns of worsening crisis in EU due to gas price ceiling Deputy Energy Minister Andreas Eriksen explained that the price ceiling will not solve the fundamental problem – lack of resources. Instead, demand will increase, and the authorities of the EU countries will have to restrict consumption even more severely =”(max-width: 320px) and (-webkit-min-device-pixel-ratio: 2), (max-width: 320px) and (min-resolution: 192dpi)” >
Introducing a cap on gas prices could exacerbate the energy crisis in Europe, Andreas Eriksen, State Secretary of the Norwegian Ministry of Oil and Energy, told CNN.
“In government, we are skeptical about the gas price ceiling. First of all, because the fundamental problem in Europe now— lack of energy resources, and the price ceiling does not solve this problem. On the contrary, it may exacerbate the energy crisis, lead to too high demand in the market and the need for new restrictive measures. It can also divert gas flows from Europe to other markets, and this will also exacerbate the crisis in Europe this winter, — Eriksen believes.
He positively assessed some of the measures proposed by the European Commission instead of the price ceiling for Russian gas— for example, the withdrawal of excess profits from energy companies in favor of consumers.
Norway— the second largest gas exporter to the EU after Russia. The country supplies the European Union with about 40% of fuel. In June, Bloomberg wrote that Brussels had reached an agreement with Oslo to increase natural gas supplies.
The energy crisis in Europe has developed against the backdrop of sanctions imposed by Western countries against Russia due to a special operation in Ukraine. In European countries, a record increase in prices over the past 40 years is recorded, primarily for utilities.
EU fears complete cessation of gas supplies from Russia: Gazprom in September, it once again stopped pumping through the Nord Stream; due to a gas leak at the turbine. At the same time, the countries of the bloc are considering a price ceiling for Russian gas as a sanction measure.
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Financial Times wrote that at least ten European states are pushing for a price ceiling for all suppliers, not just from Russia.
So far, the EU states have not been able to reach a consensus on this issue, and the European Commission on September 14 proposed alternative measures to combat the crisis: the withdrawal of excess profits from oil, gas and coal companies, limiting the maximum profit for companies producing energy from renewable sources and lignite and nuclear energy enterprises, as well as limiting consumption.
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