(Reuters) European Union ministers in charge of energy met in Brussels on Friday to find a common approach to tackle skyrocketing electricity prices that have left consumers and businesses struggling.
German Economy Minister Robert Habeck said upon arriving at the meeting he backs emergency measures to provide relief to households, but called for caution when it comes to intervening in the electricity market.
"We have to know very well what we are doing," Habeck said.
The European Commission on Wednesday presented a set of proposals for ministers to consider, including for EU countries to start skimming off excess revenues to make money available to households and businesses in need.
The price of electricity in the EU is determined by the most expensive energy source needed for its production, meaning the rising electricity prices are driven by power plants that burn expensive gas to generate electricity while others generate high profits.
Another proposal is a mandatory 5% target to reduce electricity consumption during periods of high demand to avoid burning expensive gas in addition to cheaper energy sources.
EU ministers struggle to find joint solutions to high energy costs
"It is important that we reduce demand to have a chance to make it through the winter," Habeck said.
Under discussion is also a price cap for gas imported from Russia. Habeck said he would back the measure if EU countries that are still receiving gas from Russia would be in favor of it.
Germany would currently only receive a "homeopathic dose," of Russian gas, Habeck said. Some EU countries, including Hungary, remain dependent on imports from Moscow.
European Union finance ministers meet meanwhile in Prague to scrutinize different measures already taken by the bloc's member states to help households and businesses hit by record inflation.
The meeting comes a day after the European Central Bank's decision to raise the key interest rate by 75 basis points to 1.25%, after inflation hit 9.1% in the euro area in August.
Budget discipline to tackle inflation cannot fall by the wayside as Europe addresses its multiple crises, warned German Finance Minister Christian Lindner arriving at the meeting in Prague.
"We have to deal with inflation and the mean of fiscal policy is sound public finances, reducing debts," Lindner said.
Czech Industry Minister Jozef Sikela, speaking in Brussels, said he wants "clarity" by the end of the month on how European Union countries can tackle the crises jointly.
"We have to set and send a clear and strong signal that we will do whatever it takes in order to protect our households, our economies," said Sikela, who is chairing an emergency meeting.
He signaled optimism that EU ministers would be able to agree on a common way forward at Friday’s meeting.
This would allow the European Commission to put forward a first draft law as early as next week, which will then be discussed and potentially amended by EU capitals before it can be approved.
