Too high and too low: The problems with energy prices in the EU
Too high and too low: The problems with energy prices in the EU

Author(s): Agata Loskot-Strachota
Subject(s): Energy and Environmental Studies, Economic policy, Environmental and Energy policy, EU-Accession / EU-DEvelopment, Geopolitics
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: EU energy policy; energy prices
Summary/Abstract: On 11 October, the top executives of ten European energy companies, which jointly own about half of the European Union’s electricity generating capacity, warned that "energy security is no longer guaranteed" and once again called for changes to EU energy policy. Due to persistent adverse conditions in the energy market (linked to, for example, the exceptionally low wholesale energy prices) more and more conventional power plants are being closed down. According to sector representatives, this could lead to energy shortages being seen as early as this winter. Meanwhile, in an interview with The Daily Telegraph published in September of this year, the European industry commissioner Antonio Tajani warned - in a rather alarmist tone - of the disastrous consequences the rising energy prices could have on European industry. Amongst the reasons for the high prices of energy, Tajani mentioned the overambitious pace and methods used to increase the share of renewables in the sector. In a similar vein, EU President Herman Van Rompuy has highlighted the need to reduce energy costs as a top priority for EU energy policy.

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