EU to propose joint purchase of gas in the bloc, given price hikes

The European Commission will propose a system for the countries of the European Union (EU) to buy gas together to form strategic reserves – participation will be voluntary. The measure was drawn up in response to soaring energy prices, according to a document shared with countries ahead of the summit this week.

Gas prices in Europe jumped to record levels in October due to tight supply and strong demand from world economies recovering from the Covid-19 pandemic. Prices have since fallen but have picked up again in recent weeks, with cold winter weather and lower-than-expected imports from Russia.

Higher energy prices have prompted governments to use subsidies and tax breaks to protect consumers from rising energy bills, and have prompted some countries to call for a European gas-buying system.

A proposal to update the EU’s gas market rules, which the European Commission is due to publish this week, would create such a system. “The proposal will include a framework that makes it possible for the joint acquisition of strategic gas stocks by regulated entities voluntarily,” the Commission said in a document distributed to countries in preparation for an EU summit scheduled for Thursday.

The system “will be a contribution to coordinated EU measures in the event of an emergency across the bloc,” says the plan. The Commission declined to comment on the issue.

Source: Valor Econômico

To read the full original article, access the link: https://valor.globo.com/mundo/noticia/2021/12/14/ue-vai-propor-compra-conjunta-de-gas-no-bloco-diante- do-high-prices.ghtml

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