Prague 8th September : The Czech Republic, which currently is the Presidency rotating of the Council of the European Union (EU) is seeking to remove the cap on Russian prices for gas off the agenda of the meeting on Friday of the European Union (EU) member states’ ministers of energy the Russian industry and Trade Minister Jozef Sikela has stated.In a speech before the Senate’s Committee on National Economy, Sikela said the cap is the cap a “political instrument” and said that setting price limits won’t aid in guiding Europe through the current energy crisis, Xinhua news agency reported.
“In my view this is a naive idea.It’s more about another alternative of sanctions against Russia as opposed to a current solution for the energy crisis in Europe.We’re not going to come up with new sanctions, but rather to resolve the energy crisis,” Sikela said.
He stated that the Czech Republic would prefer a model that separates the market for gas from electricity prices.
That, he said, could substantially lower the cost of electricity per kilowatt hour , but he cautioned that it could cause an increase in the consumption of gas.
Another option proposed by the European Commission would be to limit the prices of other forms of energy other than gas, like nuclear power.The Czech EU Council Presidency might consider tax incentives for energy producers and distributors in order to cut down on costs, according to the Czech News Agency.
Additionally, the country is also seeking to discuss limits on the selling of climate credits in the EU Emissions Trading Scheme (ETS).
But, even if a European solution is agreed upon this Friday, the minister stated that it will not be enough to benefit the citizens of his country.”Therefore we have created a set of steps to control and interfere in the price of energy.They will be targeted at all categories of consumers, including householders, the public sector, and the business sector,” he said.
The Czech government has already approved an agreement last month of around 177 billion Czech crowns ($7.15 billion) to ease consumer burden.
The inflation rate in the Czech Republic reached 17.5 percent in July according to figures released by the Czech Statistical Office (CSU), with most of this increase being attributed to the soaring energy prices.
According to a theoretical study carried out by the Czech Finance Ministry, an embargo on Russian gas could harm the Czech economy in the coming winter.It suggests that the country’s gross national product (GDP) in 2023 would drop by up to 2.9 percent in this scenario, and by as much as 1.6 percent in 2024.However, this year industries and households are not in danger due to the availability of reserves.
Yet, experts say that people are concerned about what the future holds.Last Saturday , there was a massive demonstration in Prague that was attended by 70 000 people, according to local police.They demanded that the government resign.of the government in place, the neutrality of the military and talks with gas companies — particularly with Russia -to ease the burden of the rising cost of energy.
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