Spanish Unesid is concerned about the lack of EU decisions on energy prices

The associationnotes the need for structural reform of the European electricity market

The Spanish steel association Unesid has expressed concern about the lack of urgent solutions to high energy prices proposed by the European Commission under the Clean Industry Agreement and the Affordable Energy Action Plan. This is stated in the organization’s statement.

According to the association, despite the correct diagnosis for the situation, which recognizes the urgency of reducing energy costs in the sector, the measures proposed in these documents do not guarantee a solution to the problem. Wholesale energy prices in the EU currently remain significantly higher than historical levels and are 2-4 times higher than those in the US or China.

“In an industry sector such as steel, where energy is a significant part of production costs, its availability is a key factor for both competitiveness and achieving decarbonization goals,” Unesid emphasized.

The EC offers mechanisms such as long-term power purchase agreements as a solution to reduce energy costs in industry. However, the industry association believes that these tools have not yet brought tangible benefits to industrial consumers. They do not allow the low costs of renewable energy production to be passed on to industry.

“The European steel sector faces an unsustainable situation without structural measures to reduce energy costs. We cannot wait for years for investments in low-carbon energy to have an impact, we need immediate solutions to ensure the competitiveness and viability of our industry and move towards decarbonization without jeopardizing thousands of jobs,” said Carola Hermoso, CEO of Unesid.

Unesid is convinced that without a structural reform of the European electricity market that will separate electricity prices from fossil fuel prices, the problems will remain. The industry needs competitive, stable and predictable electricity prices.

The EBA calls on the EC to develop clear guidelines for the development and implementation of agreements to ensure stable and competitive energy prices for energy-intensive industries. In addition, specific and coordinated measures are needed for the entire bloc to reduce regulatory costs for electricity bills.

Initiatives to accelerate investment in low-carbon energy capacity and networks will only see results in the medium to long term.

As GMK Center reported earlier, the Affordable Energy Action Plan became one of the components of the Clean Industry Agreement. The EU’s energy measures include proposals to accelerate the issuance of permits for renewable energy projects, change the way energy tariffs are set, as well as increase state aid for environmentally friendly industries and more flexible electricity production.