Joint initiative in Europe by Greece – Romania – Bulgaria on energy prices

An initiative to mobilize Europe for the de-escalation of energy prices is undertaken by Greece, Romania and Bulgaria, the Minister of Environment and Energy, Theodoros Skylakakis, announced on Monday, speaking to a radio station.

Specifically, he noted that currently, the government monitors the market developments. At the same time, a joint initiative is being taken by the Energy Ministers of Greece, Bulgaria and Romania, with the aim of creating a permanent intervention mechanism, whenever extreme prices are recorded, due to the cut-off of South-Eastern Europe from the rest of the European energy market.

“The following paradox is happening: There are not enough interconnections to transfer power from the Central European market to the Southeast. This has the result of having extreme prices on some days, which cannot be accepted in our opinion and is problematic – in this special case – and the operation of the so-called target model” underlined Skylakakis.

As the Minister explained, “while the problem is that an ‘energy island’ is being created in the region – that is, there are not enough interconnections, the ‘signal’ of the market is that the producers get more money. It makes no sense to give money to producers, when they need interconnection investments (cables) that should be made by network operators. Especially when the managers take the investment money from the consumers themselves. This is a fundamental argument. And we have a good justification to seek a permanent solution, a proper tool, to these endemic phenomena. Regardless of this initiative, the government steps in whenever necessary and we have proven this, time and time again, in the past”.

It is noted that Skylakakis discussed the matter with the Federal Minister of Economic Affairs and Climate Action of Germany Robert Habeck on the sidelines of the events of the 88th TIF.