Europe is reeling under a major energy crisis in the backdrop of the Russia-Ukraine war. Now, Belgian Energy Minister Tinne Van der Straeten has shot off a warning that the continent faces terrible winters for the next 5-10 years if no cap is put on the gas prices.
“The next 5 to 10 winters will be terrible if nothing is done, We must act at the source, at [the] European level, and work on freezing gas prices,” tweeted Van der Straeten.
Les 5 à 10 prochains hivers seront terribles si on ne fait rien. Il faut agir à la source, au niveau européen et travailler sur un blocage des prix pour le gaz. On pourrait ainsi réduire la facture énergétique de 770 euros.
— Tinne Van der Straeten (@TinneVdS) August 28, 2022
The minister further stated that if the gas prices are capped, it could help reduce energy bills by $771 per year, per family.
“There is an urgent need to introduce a European price cap. This can reduce the energy bill by 770 euros per year per family. At the EU level, the price cap has the greatest impact, but we can no longer rule out price blocks at the Belgian level either,”
The Belgian minister also asserted that her country had put the proposal in front of the EU with Germany backing it as well.
“The European energy market is failing and urgently needs reform. This is no longer tenable for many families and companies. Electricity is produced as cheaply as last year but sold at record prices. By reforming, we are tackling exuberant excess profits.” added Van der Straeten.
What is the crisis?
As reported extensively by WION, the 27-nation bloc is majorly dependent on Russian energy for survival. However, ever since Moscow invaded Kyiv and the EU imposed sanctions, Putin has leveraged his position to turn the faucet off the 40 per cent gas quota of Europe.
While most European nations are facing soaring prices, very few have capped the prices. Of the major countries, it is France that has put a four per cent cap on gas prices up until the end of the year.
Moreover, last week, French Finance Minister Bruno Le Maire remarked that the hike in electricity prices in 2023 will also be limited.
“Increases that the President and Prime Minister have spoken about will be limited increases. The four per cent cap will be maintained to the end of the year.” said Bruno Le Maire.
(With inputs from agencies)
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