The EU is preparing joint solutions to the energy crisis – see how different European countries are already helping their citizens

The EU is preparing joint solutions to the energy crisis

EU energy ministers are looking for solutions to the energy crisis caused by Russia’s attack at an emergency meeting in Brussels on Friday.

The majority of EU countries have announced substantial subsidies, which are intended to ease the plight of citizens when the price of energy rises in the run-up to winter.

The cause of the energy crisis is Russia’s war of aggression in Ukraine and the dependence of several European countries on Russian energy. During the war, Russia has reduced natural gas deliveries to the West and the price of gas has risen sharply.

France

France has introduced energy price caps. France has frozen natural gas prices at October 2021 levels and will allow electricity prices to rise by no more than four percent by the end of 2022. The government has promised to curb the rise in electricity prices in 2023 as well.

In addition, France has distributed a grant of one hundred euros to low- and middle-income households for the payment of energy bills.

France has also prepared an energy saving package. The goal is a 10 percent reduction in energy consumption.

The package includes, among other things, restrictions on air conditioning in public buildings in summer and heating in winter. The private sector is also expected to participate in the savings talks.

It can also come in the package prompt (you switch to another service) turn off the neon signs at night and keep the store doors closed when the air conditioning or heating is on.

Normally, France produces electricity in excess of its own needs, but at the moment the country has had to rely on imported electricity. Several of France’s nuclear power plants have been out of use due to maintenance interruptions and corrosion problems.

Germany

Germany also restricts spotlights on public monuments and buildings. Even the ban on heating private swimming pools has been hinted at.

Over the weekend, Germany already approved a third aid package to help citizens cope with rapidly rising prices. The new package includes, among other things, a one-time subsidy of 300 euros for the payment of energy bills for pensioners. For students, the support is 200 euros.

Germany has already given a similar subsidy of 300 euros to wage earners.

Germany also plans to continue supporting public transport. In the summer in Germany, a monthly ticket of 9 euros was used, with which you could travel unlimitedly in local and regional traffic. Now the ticket price is planned to be 49–69 euros.

About a quarter of the energy used by Germans is produced with natural gas. Before the Russian attack on Ukraine, 55 percent of the natural gas used by Germany came from Russia.

During the war, the Russian gas company Gazprom has reduced gas supplies to Europe. After last weekend’s maintenance break, the company did not restart deliveries in the Nord Stream 1 gas pipeline between Russia and Germany.

Italy

Italy has supported low-income earners by, among other things, lowering energy transfer fees and lowering the value-added tax on natural gas.

In addition, Italy has distributed a one-time subsidy of 200 euros to 28 million wage earners and pensioners. The government has planned to increase the number of beneficiaries in the future.

Italy has also prepared an emergency plan to save energy. It includes, among other things, lowering the temperature of apartments by two degrees in winter, reducing street lighting by 40 percent and shorter than usual working days in government offices. Shops might close at seven in the evening and restaurants at eleven.

Spain

Spain announced new energy saving measures at the beginning of August. Parliament has approved a regulation that aims to reduce air conditioning and heating in, for example, shopping malls, cinemas, railway stations and airports.

Shop window lights must be turned off after ten in the evening.

Spain is aiming for a 7-8 percent reduction in natural gas use, although the country is not as dependent on Russian gas as many other European countries.

In addition, Spain will reduce the VAT on natural gas from 21% to 5%. The change is valid from the beginning of October until the end of the year. The goal is that the decrease in value added tax would curb the increase in consumers’ energy bills.

Already in April, the European Commission gave Spain and Portugal permission to separate the price of natural gas and electricity for a year ahead. The decision, called the “Iberian exception”, is justified by the fact that the energy systems of Spain and Portugal are separate from the rest of Europe.

Denmark

Denmark has distributed the so-called heating subsidy to the economies most affected by the rise in energy prices. The subsidy of around 800 euros applies to approximately 320,000 households.

In addition, Denmark has granted money so that citizens can switch from gas heating to other heating systems.

Estonia

Estonia has planned to introduce energy subsidies in the coming winter. The details of the support program are not yet known.

Last winter, Estonia granted low- and middle-income households support to pay energy bills. This affected approximately 380,000 households.

Companies, on the other hand, did not have to pay electricity transfer fees at all.

Austria

This year, households will receive a one-time subsidy of 150 euros for increased energy bills. Low-income earners can receive double the amount.

In addition, this year Austria did not collect the mandatory green electricity fee, which has been collected to speed up the introduction of renewable energy sources. This payment would be 60–100 euros per household.

Austria has also, among other things, cut the price of natural gas and electricity by 900 million euros and supported business trips with a package of 400 million euros.

In addition, the country has invested 250 million euros in investment subsidies for companies to break away from Russian gas.

Austria intends to lighten income taxation and increase tax deductions to increase the purchasing power of consumers.

The whole EU

The EU will hold an emergency energy meeting on September 9. In Brussels, the energy ministers are discussing, among other things, a possible EU-wide price ceiling and the separation of the price of natural gas and electricity.

President of the EU Commission Ursula von der Leyen said on Monday On Twitter (you will switch to another service)that the purpose is, among other things, to use the profits of energy companies to support consumers and companies in a difficult position.

According to the ministers’ agreement, the reduction may become mandatory if Russia completely stops supplying natural gas to Europe.



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