Electricity market

New measures, if needed, should be aimed at protecting vulnerable households and businesses

The European Commission (EC) has called on all EU countries to wind down current energy support measures by the end of 2023 in order to keep budget and fiscal targets within recommended limits. Argus.Media informs about it.

«If a new increase in energy prices will require the implementation of support measures, they should be aimed at protecting vulnerable households and companies, be affordable from a financial point of view and maintain incentives for energy saving,» the EC said in a statement.

The EC called on EU countries to focus on the implementation of climate and energy legislation in order to reduce greenhouse gas emissions by 55% by 2030. Recommendations for individual countries were also given. In particular, France wants to see accelerated deployment of renewable energy sources. Italy needs to increase domestic gas transportation capacity to diversify its energy imports. Germany needs to increase investment and deployment of renewable energy by improving administrative procedures and obtaining permits.

According to Reuters, most of the 27 EU countries in 2022 introduced various measures to mitigate the impact of rising energy prices. The EC estimates these energy support measures in 2023 to range from 0.2% of GDP in Greece, to 0.6% in Spain, 1% in France and Italy and 2% of GDP in Germany.

As GMK Center reported earlier, the main factor affecting the EU economy in 2022 was energy crisis and high energy prices. However, Europe managed to give up Russian gas and persevere, paying a high price for it, – estimates vary slightly, but they are huge. Research company Bruegel estimated that European countries spent €768 billion between September 2021 and January 2023 to protect households and businesses from high energy prices. According to Bloomberg estimates, the cost of saving Europe from the energy crisis amounted to about $1 trillion – this is the level of price increases for energy resources for consumers. However, the above-mentioned costs were partially compensated by the state.