Romania, Greece and Bulgaria have requested several measures to address the consistently higher energy market prices in Eastern Europe compared to Western Europe in recent months, with Romanian Energy Minister Sebastian Burduja saying on Wednesday that the request would be discussed on 15 October.
Among the measures proposed by these three eastern and southern EU countries is the imposition of additional taxes on electricity producers with the lowest production costs, as well as on energy traders.
“Today I was told that Romania’s request, which was made jointly with Bulgaria and Greece, has been accepted by the European Commission for debate at the Council of Ministers in Luxembourg on 15 October. This request concerns establishing a functional energy market,” Burduja told a press conference.
He also stressed that the three countries fully comply with European rules, including those related to decarbonisation and green transition, and therefore demand “equal rights” – in particular “access to energy at competitive prices comparable to what other EU states pay”.
Burduja also identified two key factors contributing to the current situation. The first is the lack of energy interconnections in Central Europe, particularly in Austria and Slovakia, which prevents the flow of cheaper Western energy to Eastern Europe. Second, there is increased demand for energy from Moldova and Ukraine, which is driving up regional prices.
“In the medium and long term, the best solution is to expand the interconnection capacity in the countries that have not yet fulfilled these commitments. Our aim is to put fair and constructive pressure on Austria, Slovakia, and possibly other countries in the energy union to enhance their interconnection capabilities. It’s possible that, at times, energy from the East is cheaper than in the West, but it cannot flow in the opposite direction,” Burduja explained.
In the letter to the European Commission, Romania, Bulgaria and Greece proposed to impose higher taxes on electricity producers with the lowest production costs, as well as on traders. This measure would address the issue of windfall profits made by producers due to the current price conditions, which do not reflect the real production costs.
“The revenue from this tax could be redistributed to reduce the burden on consumers and help stabilise the market in the short term,” the letter to EU Energy Commissioner Kadri Simson said.
Minister Burduja said Bucharest would also ask the European Commission for permission to continue certain forms of support after the current compensation and price cap scheme expires on 1 April 2025.
(Catalina Mihai | Euractiv.ro)
Source: euractiv.com
