“Numbers – The challenge of voting”, gas and electricity: the European issues on the energy dossier

Europe continues to discuss energy. There are those, like Italy, who push for a ceiling on the price of gas, the increases of which are also driving the rise in the cost of electricity. Berlin opens instead to a “reorganization of the market” while Spain and Portugal have already moved towards decoupling to separate the two components. These are the themes at the center of the second episode of the Sky TG24 program dedicated to elections, broadcast from Monday to Friday from 18:30 to 19:00

Europe continues to discuss energy. Brussels is working to curb the surge in the price of gas, which also drags that of electricity with it, in an attempt to prevent cascading effects on the national economies of the member countries. Several proposals put forward by the European states. For example, there is the Italian one, which would provide for a ceiling on the price of the raw material to be purchased. Germany, on the other hand, is aiming for a more general “reorganization of the market”. Spain and Portugal moved towards the decoupling. This is the main theme at the center of the second episode of “Numbers – The challenge of voting”, the new format of Sky TG24 dedicated to the upcoming political elections, broadcast from Monday to Friday from 18.30 to 19 (TOWARDS THE VOTE, LIVE UPDATES – THE SPECIAL OF SKY TG24 – ALL VIDEOS).

The price of gas on European markets

Towards the end of August, the price of gas reached over 300 euros per megawatt hour on the Title Transfer Facility (Ttf), the market in Amsterdam. The Ttf is the main reference index for the cost of gas in Europe: the prices affect the bills of those who have an active contract in the enhanced protection regime. The tariffs of this market are in fact updated on the basis of the price per megawatt hour negotiated on this square. However, this is not the only existing European gas index. There are also the Italian Psv and the English Nbp. The cost of energy in the three reference markets, looking at the last month, is however practically the same: 274 euros in Amsterdam, 272 in Italy and 276 in London. From 1 October, in any case, the calculation of the gas price on the protected market in Italy will change. The Regulatory Authority for Energy, Networks and the Environment has announced that it will be parameterized to that of the Italian market.

Gas, electricity and decoupling

In recent days there has been a lot of talk about “decoupling” (decoupling) between gas and electricity costs. This is because the price at which we pay the electrons used in the house is parameterized to that of gas. The system had been developed in recent decades to incentivize production with renewable energies, which before the recent crisis were much more expensive than traditional sources. A mechanism therefore designed to contain expenses but which now, in light of the dizzying increases in recent months, ends up driving the rise.

The experience of Spain and Portugal

Spain and Portugal have already decided to follow the path of decoupling and therefore to decouple the price of electricity from that of gas. In agreement with the European Commission, Madrid and Lisbon have imposed a ceiling on the price of the former, reducing it compared to its actual cost (the difference is made by the state). A measure that affects consumers in the possibility of paying for electricity three times less than in other countries.

The gas price cap

Discussions are also continuing on the imposition of a ceiling on the price of gas to be established at European level. The proposal, advanced for months by Mario Draghi, has always received the no from countries such as the Netherlands and Germany. In the last few hours, there seemed to have been an opening from Berlin but according to Tobias Piller, a journalist from Frankfurter Allgemeine Zeitung, it would only be a “misunderstanding”. In Germany, he says a Sky TG24, there was an opening towards “the reorganization of the energy market” but not on a hypothetical maximum limit on the price of the raw material. “There is no mention of price caps in the country led by Olaf Scholz: instead, there is talk of guarantees for companies that import gas, which now have to buy at higher prices than before on the market”, says the journalist. He concludes: “If someone wants to make a price reduction policy, the whole European system must be changed. Otherwise it happens as in Spain and Portugal, where the cost of electricity has been reduced and buyers from abroad have come to try to buy electricity at a reduced price. So at the moment it can’t work ”.