LAST UPDATE | 21 Jun 2022
Tadgh McNally reports from the European Commission in Brussels:
CONCERNS HAVE BEEN raised over potential energy rationing being required in EU countries as some member states look to coal for additional power generation.
It comes as Russia began reducing supplies to both Germany and Italy as a response to sanctions issued by the EU following the invasion of Ukraine in February.
EU Commissioner Mairead McGuinness said that the idea of energy rationing may “be a reality” due to the reduced supplies of gas entering both Germany and Italy, alongside Poland and Bulgaria who have had their gas completely cut off by Russia.
Speaking in Brussels this afternoon, McGuinness, the Commissioner for financial services, warned that while the European Commission will try to avoid any kind of fuel and energy rationing, such measures may be necessary.
“Yesterday in Germany, the German Minister said we may need to look at energy rationing,” she said. “That could be a reality. It’s something we’ll try to avoid.”
McGuinness also said that the Commission is already taking measures to address energy insecurity within the EU, with measures like joint-purchasing of gas and securing sources of gas from other countries.
“We’re trying to tackle our energy insecurity by storage, by joint purchase, by making sure that we have connections elsewhere,” she said.
“The US are going to send more gas as we try to wean away [from Russian gas].”
Due to the reduced supply of Russian gas, countries like Germany, Austria and the Netherlands have opted to reduce restrictions on power plants that use coal.
This has raised concerns from European Commission President Ursula von der Leyen, who said that countries should not be “backsliding” into using fossil fuels.
“We have to make sure that we use this crisis to move forward and not to have a backsliding on the dirty fossil fuels,” said von der Leyen, speaking to European media outlets.
“It’s a fine line and it is not determined whether we are going to take the right turn.”
On energy security, McGuinness said that introducing more sources of renewable energy would be a solution in the longer term.
“We’re urging member states to ramp up investments in renewables, facilitating that by a better system of permitting or licensing that doesn’t delay projects, [which] is hugely important as well,” she said.
It doesn’t answer the question of ‘I’ve got somebody today who has a problem with paying for energy’ but I think that has to be addressed to through social welfare.
Asked whether or not the Commission would do more to tackle energy insecurity, McGuinness said that while she wouldn’t speculate on new measures, the Commission would continue to assess the situation.
“We will watch carefully what’s happening both in the real world and the financial world to see do we need to do more in particular areas.”
However, it is understood that the Commission is examining additional measures to help tackle the rising cost of energy.
A source within the Commission said that they are currently exploring whether or not price caps on fuel can be implemented.
McGuinness said that Ireland had faced energy security issues even before the war began in Ukraine, with concerns about winter blackouts being raised in mid-2021.
Due to this, the Government sought planning permission to build two new emergency power generators in Huntstown earlier this year.
“I think Ireland has particular issues to address when it comes to the energy supply, but I dare say the ministers on that are working on it. No less than any other countries,” McGuinness said.
Additional reporting by AFP
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