MOSCOW (Pakistan Point News / Sputnik - 11th October, 2021) Current energy pricing needs a revision to take into account the drive toward renewables, nuclear power phase-out and decarbonization, EU foreign policy chief Josep Borrell told El Pais.
"It is difficult to justify some elements of the current model, which was created when renewables were not used, when nuclear energy was seen as an option to increase production and when decarbonization was not a priority goal and there were no gas tensions, like right now. It would be wise to rethink the model and see if it suits the circumstances," Borrell said in an interview, published on Monday.
Such changes, however, require time and quick thinking. The challenge is that energy prices are set by gas suppliers. In addition, financial speculation is often at play. According to Borrell, countries should take regulatory measures to limit such conditions.
When asked about Nord Stream 2, the official asserted that Russia is using the gas situation to exert political pressure.
"Russia wants Nord Stream 2 to launch. It takes advantage of the situation to bring water to its mill ... This attitude is a part of the political pressure game. We still need Russian gas and we will probably need more than under contract," Borrell stated.
Talks on gas supplies should be held at an EU level, since the issue is a geopolitical one, the foreign policy chief reiterated.
Gas prices surged to a record high in September as global demand rose amid economic recovery from months of lockdowns. With winter approaching, the European Union has been struggling to fill its gas reserves.
EU leaders are set to discuss the issue, among other matters, at a summit on October 21-22.
