EU looking at measures to tackle 'critical' energy crisis

The European Commission said on Wednesday it is poised to validate "short-term temporary measures" to tackle the effects of a global energy crisis -- while keeping an eye on long-term climate goals.

The European energy commissioner, Kadri Simson, made the comment after a meeting in Slovenia of EU energy ministers dominated by the issue, which several of them said had grown "critical".

Europe is facing soaring power prices as its economy recovers from the Covid pandemic, and as winter approaches while natural gas reserves are at a worrying low level.

A profound EU transformation towards a low-carbon future, phasing out fossil fuels, is adding to the pressure on the bloc's market and on households.

A key reason for the high prices is the spot market for natural gas, something European lawmakers accuse Russia of manipulating in an effort to get Germany to activate a new pipeline across the Baltic Sea that bypasses a transit route through Ukraine.

The United States long opposed that Nord Stream 2 pipeline, but finally relented under German insistence.

US Energy Secretary Jennifer Granholm on Wednesday warned against "manipulation" of gas prices in Europe.

"The US has been clear that we and our partners have to be prepared to continue to stand up when there are players who may be manipulating supply in order to benefit themselves," Granholm told an online briefing to journalists during a visit to Poland.

Russia's gas giant Gazprom has reduced its flow of gas through Ukraine, leaving its European storage tanks nearly empty. But the company denies it is holding supplies to ransom to bring Nord Stream 2 online.

While Austrian Energy Minister Leonore Gewessler pointed to the "high dependency on Russian gas" as an underlying problem for supplies as she went into the meeting, others were more circumspect.

Simson said the reasons for the steep rise in energy wholesale prices were "mainly global" and consumers in all EU countries were therefore feeling the impact.

- EU 'toolbox' -

While she said the EU was still striving towards goals for a low-carbon future by transforming its energy, transport and industry sectors -- and by reducing reliance on natural gas and other fossil fuels -- Brussels recognised immediate remedies were needed.

"In the short run, there are several member states who are ready to introduce short-term temporary measures to protect their vulnerable consumers," she said.

Cutting value-added tax and excises on energy would be "in accordance with EU regulations," she said.

But she explained that she had also asked the EU energy ministers to draw up, within weeks, "a more structured toolbox" of measures that could include grouped purchase agreements and increased emphasis on more-affordable renewable energy.

On Thursday, Simson was to travel to Poland to join Granholm for an EU-US ministerial-level meeting on energy and climate cooperation.

The two were also to set out preparations for the EU-US Energy Council, a high-level body guiding coordination on shared strategic energy issues across the Atlantic.

The EU is not the only region struggling with a surge in energy prices.

Asia, too, is seeing increases and is taking in more natural gas to feed expanding economies.

The United States, too, has seen prices rise but not nearly as much, being largely shielded because of gas production from its shale fields.

In former EU member Britain, wholesale energy prices are outstripping even those in Europe.

At least four British consumer energy suppliers have gone bust and others are teetering, unable to raise bills to households because of a mandated price cap. Poor energy production from wind sources and a fire that has knocked out a UK converter station bringing energy from France have compounded the problem.

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