12 Energy Sensitive Associations Warn over Energy Prices in EU
Strategic Research Institute
Published on :
7 Sep, 2022, 7:28 am
12 heads of energy intensive industries representatives in European economy, which is severely impacted by the ongoing energy crisis, in a joint letter to European Commission President Ms Ursula Gertrud von der Leyen and the Czech Presidency, ahead of the Extraordinary Energy Council of 9 September, have highlighted that “Given the market concentration on the supply side, the volatility and extreme level of the European gas prices, one can question whether the gas market is working. This situation has serious consequences also for the electricity market. With the EU gas peaking at EUR 334 per MWh TTF spot prices two weeks ago, which is 15 times its pre-crisis level, 10 times more than the US prices and well above the prices in Asia, it is clear that the relation with a normal market is lost. Beyond the current impact on citizens through inflation, destructive consequences on gas and electricity industrial users are inevitable.”
They wrote “The last weeks saw a great number of industrial plants shutting their doors or reducing their production in Europe and more are expected in the forthcoming weeks. These massive plants curtailments will increase Europe’s dependency on third markets for strategic supply chains and will drastically increase the global carbon emissions.”
They warned “For many energy intensive industries there is currently no business case to continue production in Europe nor visibility and certainty for investments and further developments. The effects of those closures are also starting to have a severe impact on our value chains endangering European industrial base and the availability of essential products more broadly.
They urged “Immediate and impactful action is needed at European level, and we welcome your proactive role in this regard. Therefore, against the background of the State of the Union address of 14 September and ahead of the Extraordinary Energy Council of 9 September, we call on the European Union to urgently introduce EU wide measures aimed at limiting the price of natural gas and also measures designed to disconnect electricity prices from gas prices. The temporary crisis state aid framework also needs to be adjusted to this new reality.”
The letters is signed by
Mr Marco Mensink, Director General CEFIC
Mr Koen Coppenholle, Chief Executive CEMBUREAU
Mr Jori Ringman, Director General CEPI
Mr Renaud Batier, Director General CERAME-UNIE
Mr Rodolphe Nicolle, Secretary General EULA
Ms Ines Van Lierde, Secretary General EUROALLIAGES
Mr Axel Eggert, Director General EUROFER
Mr Guy Thiran, Director General EUROMETAUX
Mr Rolf Kuby, Director General EUROMINES
Ms Mara Caboara, Secretary General EXCA
Mr Jacob Hansen, Director General Fertilisers Europe
Mr Bertrand Cazes, Secretary General Glass Alliance Europe