Strasbourg:European Commission President Ursula von der Leyen has unveiled a proposal to centralize energy procurement across the European Union as energy prices continue to rise. Announcing the initiative at the European Parliament, she outlined plans for a new working group to aggregate energy demand and streamline procurement processes.
According to Emirates News Agency, von der Leyen emphasized the necessity of elevating the EU's energy crisis response mechanism from 2022, advocating for a system that not only connects buyers and sellers but also centralizes contracting. This proposal is part of broader efforts by the European Commission to combat escalating energy costs, with gas prices having increased by 140 percent since February and diesel prices having doubled.
The European Commission will also initiate a 'strategic dialogue on European refineries,' led by Commissioners Dan Jorgensen and Andrius Kubilius. This initiative aims to reduce costs and secure energy supplies, including those necessary for defense.
In conjunction with these efforts, the G7 countries have recently agreed to release 100 million barrels of diesel and crude oil to stabilize international prices and offer exporters an additional year of flexibility regarding methane requirements.
Von der Leyen has dismissed the idea of broad financial support to mitigate the impact of higher energy prices on households, instead suggesting targeted assistance for those most affected. She cautioned that blanket measures could inadvertently boost demand, disproportionately aid wealthier households, and incur substantial costs.
She also highlighted the importance of accelerating the electrification of the European economy to reduce dependency on imported fossil fuels. With electricity currently representing less than a quarter of the EU's energy consumption, the goal is to double this share by 2040, potentially slashing the annual fossil fuel import bill by approximately £260 billion.