Economy, Energy

Europe scrambles to ease energy crisis

Spain approves plan to cut natural gas use, Poland sets energy price cap, strikes and chaotic incidents in France

Ekip  | 11.10.2022 - Update : 12.10.2022
Europe scrambles to ease energy crisis

ISTANBUL

Facing a spiraling energy crisis following the Russian war in Ukraine, European governments are coming with measures to rein in runaway bills and give some relief to anxious citizens.

There were several new plans put forward across the continent on Tuesday, indicating the extent of the apprehension gripping Europe as it braces for what many are warning will be a tough winter. 

On the other hand, ordinary Europeans who are directly affected by the crisis are raising their voice by organizing strikes as well as storming gas stations.  

Spain

The Spanish government agreed on a new energy contingency plan on Tuesday to drive down natural gas consumption by between 5% and 13% this winter.

The plan includes 73 measures on top of a package passed in the summer that limits heating in many public spaces to 19 degrees Celsius (66 degrees Fahrenheit). 

While the government has yet to release the full details of the plan it will submit to the EU in Brussels, Spain’s Environment Minister Teresa Ribera outlined some of the main concepts.   

Poland 

The Polish government on Tuesday announced a price cap on electricity to protect small businesses, public service entities and households. 

The maximum price of electricity for "vulnerable consumers" and micro-, small- and medium-sized enterprises is 785 Polish zloty ($156) per megawatt hour. For households, the price cap is set at 699 Polish zloty per MWh. 

"The proposed solutions for the protection of the above-mentioned group of customers assume that regardless of the increase in electricity prices on the wholesale market in 2023, a fixed price for trading in electricity is provided for in settlements with customers," a government statement reads.   

France 

A French labor union on Tuesday announced that ongoing strikes at TotalEnergies oil refineries would be extended, along with two facilities of Esso-ExxonMobil, even as pumps struggle to keep gas flowing in the country. 

Demanding higher wages, strikers at TotalEnergies extended the worker blockades called by the General Confederation of Labor (CGT) despite mounting pressure from the government, said Eric Sellini, the CGT coordinator for the group. 

Union members voted overwhelmingly to continue the strike, Sellini added. 

Supply shortages at French gas stations are leading to increasingly chaotic incidents. 

On Monday, a group of youths stormed a gas station in the Val-d'Oise department in the Paris metropolitan area and sold gasoline at conditions they set. 

Police were notified by several angry motorists after the youths took control of the TotalEnergies gas station. 

According to local media reports, the youths sold residents of the region gasoline at the normal price, while charged a higher price to those coming from other regions.



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