Síkela: Czechia will try to exclude price cap on Russian gas from EU energy ministers’ talks

Czechia will try to exclude the question of a possible cap on gas prices from Russia out of the programme of Friday’s EU energy ministers meeting in Brussels, the country’s industry and trade minister, Jozef Síkela, told the Senate’s Committee on the Economy on Wednesday. Calling the cap a ‘political instrument’, Mr Síkela said that setting a limit on gas prices is not a solution to the crisis Europe faces. Instead, it would be more of a sanctions tool against Russia.

Highlighting that Europe is now primarily interested in an immediate solution to the energy crisis, Mr Síkela said that Czechia will intend to push the proposal of the so-called “Iberian model”, which would separate gas prices from electricity prices, onto the schedule of the meeting. The Czech industry minister said that this would primarily help when it comes to electricity prices, which could be lowered to between 200 to 400 euros per kilowatt hour. However, he also said that this model could lead to greater gas consumption, which could endanger Europe’s supplies in case of a hard winter.

Another option is being proposed by the European Commission. It intends to cap prices for some cheaper energy sources, such as nuclear power. Mr Síkela said that tax adjustments for manufacturers and distributors of energy could also be considered.

Czechia also hopes to start a discussion about the possibility of limiting the sale of climate credits used in the European Union Emissions Trading Scheme. A year’s halt to the scheme would not impact the EU’s climate goals, Mr Síkela said.