EU energy ministers gathered in an extraordinary informal videoconference meeting to coordinate a common European approach in the context of the escalating tension in the Middle East and its impact on energy markets. The meeting came in response to the need for closer coordination between member states and rapid decisions at the European level in response to the dynamic geopolitical environment and its effects on the energy sector.
“The situation requires timely and coordinated action at the EU level, rather than reactive measures “piecemeal” according to the development of the crisis”, emphasized Bulgarian Energy Minister Traycho Traykov in his statement. According to him, all member states are facing similar challenges – high and unstable energy prices, pressure on industry and households, as well as the need for quick solutions to ensure security of supply.
Bulgaria supports the acceleration of efforts to diversify energy sources, including through the development of gas infrastructure and strengthening regional cooperation, especially in Central and South-Eastern Europe. “Timely financial support for key projects, such as the Vertical Gas Corridor, will be crucial for strengthening our common energy security”, stressed Minister Traykov.
He pointed out that the tension in the Middle East is already having a direct impact on global energy markets and that is why it is important for the EU to act together to limit price pressure and ensure security of supply.
Minister Traykov also presented the measures taken by Bulgaria – compensation for households, targeted support for vulnerable groups and a package of around EUR 100 million for the most affected sectors. He also informed his European colleagues about the creation of a coordination mechanism under the Council of Ministers to monitor markets and prevent distortions.
With regard to business, our country is working on mechanisms for access to financing tied to electricity prices, as well as a scheme to support energy-intensive industries. Such support will allow companies to provide their goods and services to customers at competitive prices. In this regard, Bulgaria insists on faster approval of state aid by the European Commission.
As short-term priorities, the minister outlined the removal of regulatory and infrastructure barriers, improving cross-border connectivity and limiting the impact of carbon costs on electricity prices. According to him, a sustainable solution can be achieved through a reform of the Emissions Trading Scheme (EU ETS), including the introduction of an emergency crisis response mechanism. He stressed that the system should provide clear price signals, but without undermining the competitiveness of European industry.
Among the ideas discussed are a temporary reduction in carbon costs by using the Market Stability Reserve or introducing a so-called “emergency brake“ to release quotas in times of crisis. Bulgaria also supports accelerating export compensation mechanisms within the Carbon Border Mechanism (CBAM), including for electricity.
As complementary measures, the possibility of temporary compensation for producers' carbon costs, using revenues from emissions trading to reduce price pressure, as well as creating a central mechanism for purchasing electricity for energy-intensive industries in coordination with neighboring countries were mentioned.
“We need to find solutions that simultaneously reduce costs, maintain competitiveness and guarantee security of supply – without excessive burden on national budgets“, emphasized Traykov. He also emphasized the role of existing conventional capacities as a factor for the stability of power systems with the widespread introduction of RES.