The President of the European Commission, Ursula von der Leyen, announced this Tuesday the launch of a new working group aimed at strengthening the joint energy purchasing system in the European Union. The objective is to concentrate demand and assign acquisitions to a single market operator, in response to the price escalation resulting from the war in the Middle East.
"We are going to launch a new working group to aggregate energy demand," she stated during a debate in the plenary of the European Parliament in Strasbourg, held to prepare for the summit of leaders on October 15 and 16. In her speech, she defended the appropriateness of taking the mechanism used during the energy crisis of 2022 "to the next level" and evolving from the "simple contact" between buyers and sellers to a model in which the EU concentrates its needs and centralizes contracting.
This proposal is part of the package of measures that Brussels is designing to address the rising energy costs. Von der Leyen recalled that gas has increased by 140% since the end of February and that diesel has doubled in price, while imports of fossil fuels have resulted in an additional expenditure of 100 billion euros since the start of the conflict.
"Families and industries are paying the cost of a crisis that occurs far beyond our borders," warned the President of the Community Executive. She emphasized that companies are under "great pressure" and that many citizens are struggling to meet their bills, a situation that "could intensify" with the arrival of winter.
In the area of supply, the Commission will activate a "strategic dialogue on European refineries," coordinated by Commissioners Dan Jorgensen and Andrius Kubilius, in order to "reduce costs" and ensure the energy needs of the bloc "also for defense."
This line of action is in addition to the release of 100 million barrels of diesel and crude oil agreed upon last week by G7 countries to help stabilize international prices, as well as the decision to grant exporters an extra year of flexibility regarding methane.
"This saves additional costs in a time of crisis," defended the community president, who framed these initiatives within the measures regarding supply with which the EU intends to respond to the current energy tensions.
REJECTS GENERALIZED AID
Von der Leyen has ruled out, on the contrary, resorting to "generalized" aid to cushion the impact on households and has advocated for "specific" support aimed at those who "really need it," considering that indiscriminate measures would drive up demand, favor higher incomes, and incur "enormous costs."
"There is no one-size-fits-all solution for the entire European Union. The different member states have different energy combinations and face different pressures. Our role is to give them the tools and flexibility to respond," she indicated.
The president of the Commission has also reiterated the need to accelerate electrification to reduce the vulnerability of the European economy to international disruptions, insisting on the importance of addressing the "structural problems" that keep the bloc dependent on "volatile" external fossil fuel markets.
"When we import fossil fuels, we import the disruptions and crises that come with them," warned Von der Leyen, who called for "strategic decisions" to move towards greater autonomy and progressively replace these resources with clean electricity produced in Europe.
In this line, she recalled that electricity today represents less than a quarter of final energy consumption and that the community electrification plan aims to double that proportion by 2040. According to her calculations, this change would allow for a reduction of 260 billion euros annually in fossil fuel purchases from third countries.
"In the coming months we will present the measures to achieve this. Because every electron of clean energy that we produce and use here, in Europe, is energy that we do not need to import from volatile global markets," she concluded.