The European Union is studying two possible models for reducing energy prices

Prague, 6 September. Separating the price of natural gas from the price of electricity, or capping the rates of energy sources that cost less to produce than gas, are the two main options being studied by the European Union (EU) to limit the rise in energy prices.

That day came in Prague by the Czech Minister of Industry and Trade Josef Sekila, after he made it clear that the presidency of the European Union that his country occupies this semester is the Extraordinary Energy Council that was held next Friday in Brussels.

The minister, who acknowledged that countries are trying to agree on a position based on different proposals, stressed that two possible alternative models are used to determine prices in the energy sector, noting the importance of reaching an agreement on a joint strategy for the energy sector. all block.

Regarding the idea of ​​separating the price of natural gas from the process of electricity price formation, he indicated that it would be a way “high gas prices, which are the subject of the energy war (with Russia), do not affect the price of electricity” as is currently the case.

The downside to this alternative, according to Sikela, is that it can boost gas consumption, a rare commodity at the moment in the European Union.

Currently, the price offered to wholesalers is the most expensive sector of production on the market, that is, gas-fired power plants, which make up 24% of the generation in the European Union.

This explains why producers who use other sources, such as atomic or renewable sources, get huge benefits as a result of higher gas prices.

Therefore, another alternative would be to set maximum prices for all other energy sources, with the exception of gas.

“There is complete consensus that we need to maintain liquidity in the markets, which means providing enough liquidity for traders to be able to trade,” Sekila said.

For the Czech politician, the advantage of this second alternative is that “it will not be an impulse to consume more gas.”

Brussels wants on Friday to cap gas prices, cut electricity consumption and give aid to the most vulnerable consumers.