The Director General of the Ministry of Energy, Marios Panagidis, described the Commission’s proposal for the correction mechanism for natural gas prices during the Energy Council in Brussels as a step in the right direction to deal with high energy prices, while expressing understanding for the concerns of others Member States regarding the cap and its possible effects on security of supply.
In his intervention in the context of the discussion on the correction mechanism, Mr. Panagidis stated that Cyprus will maintain a constructive attitude and agreed with the Presidency’s proposal to continue the discussion with a view to making decisions on December 13.
According to an announcement by the Ministry of Energy, the extraordinary meeting dealt with three proposals for regulations concerning:
– strengthening solidarity through better coordination of gas markets, cross-border gas exchanges and reliable price benchmarks,
– establishing a framework to accelerate the development of Renewable Energy Sources and
– establishing a market correction mechanism to protect citizens and the economy from excessively high prices.
As mentioned, the Council decided that the three proposals should be approved simultaneously in a new extraordinary Energy Council scheduled for December 13. Although there was an agreement on the texts of the first two proposals, their final adoption will take place after an agreement is also reached on the proposal for a regulation on the gas purchase price correction mechanism.
Referring to the natural gas price correction mechanism, Mr. Panagidis noted that the proposal presented by the European Commission during the Council’s work is a step in the right direction to deal with excessively high energy prices.
At the same time, he expressed understanding for the concerns of other member states regarding the ceiling and its implementation, and assured that Cyprus will maintain a constructive attitude in the upcoming discussions.
In this context, he added, he stressed the need for the measures to be decided not to discourage investments in the energy sector, not to compromise security of supply and, at the same time, to safeguard that prices remain within reasonable limits.
In relation to the regulation for strengthening solidarity and for joint supplies of natural gas, Mr. Panagidis welcomed the clarifications included in the final text and in particular the provision for compensation for the cost of providing solidarity in natural gas.
Afterwards, the Director General of the Ministry of Energy expressed Cyprus’s agreement with the provisions of the revised text of the Regulation proposal for the acceleration of renewable energy licensing procedures.
He particularly welcomed the flexibility given to EU Member States for special treatment of areas of traditional or historic character