Summary
Gas costs have risen precipitously in the EU and are a multiple that of global competitors. This also drives up electricity prices and, with the EU more reliant on LNG (Liquefied Natural Gas), structurally higher costs are becoming embedded in the EU’s energy market. This position paper paper urges policy initiatives, which can lower gas prices – understanding that we will not be able to affect the market fundamentals driving much of the cost difference between the EU and global competitors.
Key recommendations:
- Utilise state aid frameworks to provide temporary relief on taxes and network tariffs.
- Increase domestic supplies of gas.
- Reduce supply and planning uncertainty in gas markets.
- Diversify the supply of gas.