The Commission also mentioned some longer-term steps, including the possible joint purchase of gas or the expansion of storage capacity. However, other fundamental demands of states, such as the reform of the electricity market or the regulation of emission allowance prices, have not been heard by the EU executive.
The several-year-on-year rise in gas and electricity prices has in recent weeks led countries such as France and Italy to intervene to reduce the immediate impact of rising prices on the population. For example, the government in Paris promises support to poorer households and is preparing tax restrictions.
According to the Commission, such actions are OK if they are temporary and targeted at households at risk of energy poverty. According to the EC, states can support their inhabitants, for example, with money from the sale of emission allowances, the prices of which are also climbing at an unprecedented rate.
“These measures should be easy to adjust in the spring, when we expect the current situation to stabilize,” said the EU executive.
–
VAT cancellation does not take place
The complete abolition of value added tax (VAT) on electricity, as considered by the outgoing Czech government, was not supported by the Commission. If applied, Prague would violate the tax rules of the single EU market, for which it would be in danger of being penalized.
Brussels does not count on another demand, which the Czech Prime Minister Andrej Babiš (YES) is trying to enforce at the EU level. The proposal makes no mention of possible regulation of the prices of emission allowances, the impact of which on energy price increases, according to the Commission, is only marginal.
The reform of the electricity market does not appear among the longer-term proposals. According to the rules of the EU market, its price is calculated from the currently very high price of gas, which France mainly wanted to change. However, like setting a maximum price for emission allowances, this idea does not support a significant number of Member States. The Commission only intends to better monitor the carbon market and examine possible anti-competitive practices in the energy market.
The EU executive also wants to explore the potential benefits of possible voluntary involvement of member countries in joint gas purchases. This could improve their position, for example, when negotiating the purchase of Russian natural gas.
– .
