By Kate Abnett

BRUSSELS/Reuters – Wednesday’s statement by the European Union indicated that they would examine their power market designs and look at proposals to overhaul EU regulation. The move is part of EU efforts to address climate change in a time when energy prices are record high.

European gas and electricity prices are rising as tight supplies of gas have collided in Europe with high demand from countries recovering after the COVID-19 pandemic.

The EU’s high energy prices were a major topic on Wednesday. After Tuesday night’s discussion, leaders from the EU discussed their responses.

Kadri Sison, EU energy commissioner, told Parliament that “there is no doubt” we have to adopt policy measures.

There has been much debate about whether Brussels should intervene in the crisis. Next week, the Commission will publish a list of possible options that governments and EU might use to respond.

Simson stated that the Commission will launch an investigation into the EU’s electricity market to determine if it is capable of delivering the EU’s plan to transition to renewable energy. France and Spain called for an overhaul of EU electricity regulation in order to remove the gas price from power prices.

Simson declared, “We believe the framework is sound but we recognize the difficulties.”

Pedro Sanchez, the Spanish Prime Minister, stated that he had requested a “audacious response” from Brussels on behalf of other countries.

He stated that “we need exceptional, innovative measures” and requested the purchase of gas in a consortium.

Some countries may not be convinced. EU regulators predict that gas markets will ease this spring. However, some governments feel the issue can be best addressed with tax breaks and subsidies for consumers to reduce high costs. These are measures which many countries have already implemented.

Mark Rutte the Dutch Prime Minister stated that it was primarily a matter for each member state to resolve. “We need to look at how Europe can work together. There are many proposals, some more wild and others less so.

As the EU is preparing for major climate policy upgrades, the price rise has already arrived. This raises concerns in the EU’s eastern and central states about the possibility of more people falling into poverty by increasing the costs of polluting fuels.

Brussels wants to make sure that the price increase does not hinder its plan to cut emissions. To help low-income households invest in green options, a fund of multi-billion euros has been proposed by Brussels.

Let’s not lose sight of the goal. Frans Timmermans (EU climate policy chief) stated, “The problem here is climate crisis.” “The faster we make progress towards renewable energy the more we can protect our citizens from high prices.”