European Union (EU) Commission Member Responsible for Energy Dan Jorgensen and EU Term President Ireland's Minister of Climate, Energy and Environment Darragh O'Brien made statements to the press at the entrance of the meeting of the energy ministers of the EU member states in Luxembourg.
Pointing out that the upcoming winter will be difficult for many Europeans, Jorgensen said, "Unfortunately, in a normal year, approximately 50 million Europeans cannot adequately heat their homes. This number will probably increase further due to the high energy prices in Europe this year."
Jorgensen emphasized that all possible steps should be taken to alleviate the difficulties faced by citizens and called on member countries to accelerate the process of moving away from fossil fuels.
Stating that renewable energy, energy efficiency and electrification should be increased, Jorgensen explained that supporting electric heat pumps instead of systems using natural gas and oil, and electric vehicles instead of internal combustion engine cars could make a significant difference.
Industry has difficulty in competition
Pointing out that high energy prices also put pressure on companies, Jorgensen noted that the industry has difficulty in competing and that the support to be provided to businesses is among the priority agenda items of the meeting.
Jorgensen stated that in some countries it may be necessary to directly subsidize fossil fuels, especially in order to protect the poor, and that these supports should be targeted and temporary.
Comparing the current situation with the energy crisis in 2022, Jorgensen argued that the EU is in a better position to respond to the crisis thanks to reducing natural gas consumption and diversifying its supply sources.
Jorgensen stated that 18 percent less natural gas was consumed compared to 2022, that 45 percent of natural gas was supplied from Russia in the past, and today it is purchased from suppliers in different parts of the world.
Pointing out that the current crisis also includes oil and petroleum products, Jorgensen reminded that situations that threaten the supply security of jet fuel were encountered in the summer months.
Jorgensen stated that they do not expect a supply security crisis at this stage, but the impact of prices on citizens and companies should be taken seriously, and emphasized that the availability of supply does not solve the problem for citizens who do not have enough money to heat their homes or buy fuel for their vehicles.
Referring to the EU's post-2030 energy policies, Jorgensen added that renewable energy, clean technologies including nuclear energy, energy efficiency and electrification should be parts of the future framework.
Ireland calls for structural steps to reduce costs
Minister O'Brien also emphasized that Europe's energy supply and reserves are strong, and that the main problem for households and businesses is costs.
Reminding that wholesale energy prices have increased significantly, O'Brien stated that excessive dependence on imported fossil fuels is one of the biggest risks for the EU's energy security and competitiveness.
Reminding that member countries have implemented measures such as tax reductions, temporary energy supports and reducing taxes on gasoline and diesel, O'Brien noted that the main problems of the energy system should be focused on in the long term.
Pointing out the importance of accelerating electrification and renewable energy investments, O'Brien said that they aim to make progress in regulations regarding electricity networks and network fees.
O'Brien stated that there are different views among member states regarding taxation in the proposal regarding network fees, and that a compromise will be needed.
Natural gas prices reached 100 euros for the first time since 2022
The meeting of EU energy ministers is being held at a time when wars in Iran, Ukraine and Yemen have increased oil and natural gas prices.
Conflicts reduce the activity of refineries in the Middle East and Russia, as well as disrupting the flow of oil and natural gas along critical routes such as the Red Sea and the Strait of Hormuz.
Wholesale natural gas prices in Europe briefly reached 100 euros per megawatt-hour yesterday for the first time since December 2022. Gas prices in Europe are around three times their pre-war levels in Iran.
While the EU entered the winter heating period with approximately 75 percent occupancy of natural gas tanks, this rate was at 83 percent in the same period last year.
The barrel price of Brent oil was recorded at 110.22 dollars as of 09.30 today, and the December term barrel price of West Texas Intermediate (WTI) crude oil was recorded at 101.38 dollars.
