The permanent secretary of the Ministry of Energy, Marios Panayides said that the Commission’s proposal for a price cap on natural gas is a step in the right direction, and expressed understanding for concerns of other member states regarding its possible impacts on security of supply, during the discussions in Thursday’s extraordinary Energy Council in Brussels.
Speaking during the discussion on the Commission’s proposal on a price correction mechanism, Panayides said that Cyprus will maintain a constructive stance and supported the Presidency’s proposal to continue the discussion with a view to taking decisions on December 13th.
According to an announcement by the Ministry for Energy, the extraordinary session focused on three proposed regulations on:
– strengthening solidarity through better coordination of gas markets, cross-border gas exchanges and reliable price benchmarks,
– the establishment of a framework to accelerate the development of renewable energy sources and
– the establishment of a market correction mechanism to protect citizens and the economy from excessively high prices.
The Council decided that the three proposals should be adopted in parallel at a new extraordinary Energy Council which has been scheduled for 13 December. Although the member states agreed on the texts of the first two proposals, their final adoption will take place once agreement has also been reached on the proposal for a gas market correction mechanism.
Referring to the discussion on a price correction mechanism for natural gas, Panayides noted that the proposal presented by the European Commission is a step in the right direction towards addressing excessive energy prices.
Panayides also said that Cyprus understands the concerns of other Member States regarding the cap and the way it will be implemented, and assured that Cyprus will maintain a constructive attitude in upcoming discussions.
In this context, he stressed that the measures that will be decided should not discourage investment in the energy sector, not compromise security of supply and, at the same time, ensure that prices remain within reasonable limits.
Regarding the regulation on strengthening solidarity and common gas supplies, Panayides welcomed the clarifications included in the final text, in particular the provision for compensation for the cost of supplying natural gas in solidarity.
He also said that Cyprus agrees with the provisions of the revised text of the proposed Regulation on the acceleration of licensing procedures for renewable energy sources.
Panayides particularly welcomed the flexibility given to EU Member States to afford special treatment to areas of traditional or historical character.
Source: Cyprus News Agency