{"id":102786,"title":"EU may subsidise cheap power for Britain, Brussels are not happy","publisher":"Share Talk","author":"sharetalk","published":"2022-10-26T08:21:43+00:00","modified":"2022-10-26T08:21:43+00:00","canonical_url":"https://www.share-talk.com/eu-may-subsidise-cheap-power-for-britain-brussels-are-not-happy/","markdown_url":"https://www.share-talk.com/eu-may-subsidise-cheap-power-for-britain-brussels-are-not-happy.md","json_url":"https://www.share-talk.com/eu-may-subsidise-cheap-power-for-britain-brussels-are-not-happy.json","category":"Blogs","categories":["Blogs","Energy"],"tags":["agreement","bills","Brexit","Czech Republic","ENERGY","EU","European","Jozek Sikela","ministers","Switzerland","UK"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"After it was revealed that the EU may be subsidizing cheap power for Britain, plans to reduce EU energy bills have been criticized in Brussels.\n\nOfficials from the European Commission warned that low prices could lead to electricity being taken away by export markets.\n\nOfficials fear that this would violate the Brexit agreement and lead to higher export prices for Britain.\n\nSoaring gas prices, caused by Russia’s war against Ukraine, have caused havoc on energy markets because of the central role of gas in heating and electricity generation.\n\nMinisters from the UK and EU are trying to lower prices.\n\n![](https://www.share-talk.com/wp-content/uploads/2022/10/Anger-in-Brussels-as-it-emerges-EU-may-subsidise-cheap-power-for-Britain-..-2022-10-26-at-9.17.46-AM-300x194.jpeg)\n\nOne measure in the EU is to limit the amount of electricity that can be generated by gas-fired power plants. The state would pay fuel costs in return.\n\nThis would not only lower the price of gas power stations’ output but also other generators’ output. It would also lower the clearing price on the market.\n\nThe Commission warns that there could be unintended consequences, such as an increase in the exports of power to non-EU nations.\n\nAccording to the Commission, this would increase gas consumption in the EU and mean that the bloc would fund cheaper power in countries like the UK and Switzerland.\n\nIt states that the effectiveness of the measure in lowering electricity prices as well as avoiding more gas consumption is heavily dependent on how much-increased flows of subsided electricity to non-EU countries can also be avoided.\n\nThe Commission recommends that the scheme be extended to the UK, or that the price cap is applied only within the EU to stop this happening.\n\nIt warns, however, that many of its trade deals – including the Brexit agreement – “prohibit higher export prices”.\n\nThese concerns point out the immense challenges faced by politicians in trying to lower prices in cross-border energy markets.\n\nOn Tuesday, European ministers met to discuss ways to address the energy price crisis. Winter is coming.\n\nJozek Sikela (industry minister for the Czech Republic), said Tuesday that “time matters” and stressed the importance of speed. The Czech Republic holds the rotating EU presidency. “The winter is coming, and the game isn’t over.”\n\nKathryn Porter, a Watt-Logic consultant, thinks the scheme will never be implemented due to the risks and complications involved, including the need for EU gas stocks to be preserved.\n\nShe said, “We are having a warm winter, so the demand is lower than we expected.”\n\n“But the real problem will be next summer. “Where is the gas going from to stock storage facilities?”"}