Full decoupling of electricity, gas prices isn’t possible yet – Lithuanian commissioner

  • 2023-03-14
  • BNS/TBT Staff

VILNIUS – As the European Commission presented new proposals on the electricity market reform on Tuesday, Lithuania's delegated EU Commissioner Virginijus Sinkevicius says it’s not yet possible to fully decouple electricity and gas prices. 

"It is not possible to completely decouple electricity and gas prices because gas is still part of our energy mix and a lot of electricity is still produced from gas," the EU commissioner in charge of the environment, oceans and fisheries told BNS on Tuesday.

One of the key reform proposals, he said, is to set a price floor and ceiling for electricity generated from renewable sources. 

"One of the key aspects is that we will have a price floor and a price ceiling (for electricity - BNS). They will prevent prices from jumping above that ceiling, but will also ensure that energy is bought from producers," Sinkevicius said.

In his words, EU energy ministers would have to agree on specific ceilings and floors for electricity prices.

According to Sinkevicius, the EC's new proposals are primarily aimed at electricity price spikes seen, let's say, last August, as well as at speeding up the development of renewable energy.

Earlier in the day, the EC presented proposals to reform the EU's electricity market design to accelerate a surge in renewables and the phase-out of gas, make consumer bills less dependent on volatile fossil fuel prices, better protect consumers from future price spikes and potential market manipulation, and make the EU's industry clean and more competitive.