Europe’s energy crisis looming

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JAKARTA – Ahead of winter, Europe faces an energy problem, and nations are continuing to implement solutions.


According to local media, a French town decided to give out winter clothing to students because schools won’t be as heated.

As part of energy-saving measures, Periers, Normandy, mayor Gabriel Daube said that public buildings won’t be heated over 19 degrees Celsius (about 66.2 degrees Fahrenheit).

He told the radio station France Bleu that “this is one of the initiatives that complement a comprehensive series of actions to lower the energy cost of the municipality.”

For a total of 350 children, the mayor estimated the cost of the jackets at close to €6,000 (USD5,860). Daube went on to say that the expense would be worthwhile because he had aimed to save a total of 10% on energy expenditures, or roughly €20,000.

The mayor has announced that after 11 p.m. local time, public lighting will be fully turned off and heaters in public buildings will be limited to 19 C.

This winter, there is a “high danger” of gas shortages, according to the UK’s energy regulator.

If a gas emergency is declared as a result of the current Russia-Ukraine war’s effects, it may be necessary to order large industrial consumers in the UK to stop consuming gas.

The warning was contained in a letter sent last week to The Times of London by the energy watchdog Ofgem.

The International Energy Agency issued a separate warning earlier on Monday, stating that reduced gas flow from Russia to Europe, high gas prices, low demand, and the effects of energy conservation measures will all contribute to tight natural gas markets worldwide in 2019.

According to the IEA, the reduction in Russian natural gas exports to Europe not only pushes global prices to new highs but also disrupts commerce, resulting in fuel shortages in some rising and developing nations.

According to local media, Belgium is considering taxing energy businesses more heavily than the EU’s emergency plan, which would bring in an additional €4.7 billion (USD4.6 billion) in money for the government to deal with the economic crisis.

The federal government of Belgium unveiled a plan that goes far beyond the agreement reached on Friday by the EU members and wants to tax the surplus profits of businesses who produce energy at an infrastructure cost.

According to Petra De Sutter, deputy prime minister, the time and profit limits can be extended under the new EU regulations.

She added that the government expects to raise €4.7 billion over the course of two years to aid needy people and companies.

Belgium intends to impose the tax at a rate of 130 euros per megawatt hour, despite the fact that the EU energy ministers reached a political agreement on a text that allows to cap revenues at €180/megawatt-hour for electricity generators that benefit from significantly lower production costs than the market price received because of the current crisis. These companies include nuclear or renewable energy companies.

In addition, the Federal Energy Ministry’s proposal would impose a retroactive tax on corporate earnings from January 2022 through December 2023, instead of the seven-month EU plan.

In addition to the expected €600 million that fossil fuel corporations provide annually as a crisis solidarity payment, the government estimates that it will raise an additional €1.2 billion this year and €2.3 billion the next year.

The Belgian Federal Parliament has not yet approved the idea.

The cooler than usual weather may prevent Germany from meeting its gas-saving goals, local media reported on Monday.

According to the news site Business Insider, the German government’s target of having the gas storage tanks 95% full by November 1 is now in peril.

The news site cited a Deutsche Bank analysis that claimed German households will need to cut their gas consumption by at least 20% in order to avoid shortages this winter.

However, experts told the news outlet that households had already raised their consumption in September compared to the previous year.

According to the experts, shortages won’t likely occur in Germany until early March if homes cut their gas consumption by 15%.

However, experts warned that gas storage facilities would be empty by February if use falls by just 10%.

Source: Anadolu

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