Recently, many companies are going through hard times due to the rising energy crisis in Europe. In the past weeks, producers from various sectors had to reduce or completely stop production as they could not cope with electricity and natural gas prices. Unable to cope any longer with the effects of the crisis, European companies issued a joint statement calling for help from the European Commission:
"The undersigned intensive energy companies are important representatives of the European economy, which has been severely affected by the ongoing energy crisis.
Given the concentration on the supply side of the market, the volatility and exorbitant increases in Europe's gas prices raise questions about the efficiency of the gas market.
This situation also has serious consequences for the electricity market.
With EU gas peaking at 334 €/MWh TTF spot prices two weeks ago, 15 times higher than before the crisis, it is clear that it is no longer associated with normal market conditions. EU gas prices are 10 times higher than US prices and well above Asian prices.
Along with the current impact of inflation on citizens, its devastating consequences for industrial gas and electricity users are inevitable.
In recent weeks, many industrial plants in Europe have had to close their doors or reduce production. This number is expected to increase further in the coming days.
These massive restrictions will increase Europe's reliance on third markets for its strategic supply chains, while drastically increasing global carbon emissions.
For many busy energy companies, there is currently no job position to continue production in Europe or job visibility and certainty for investments and potential developments.
The effects of these closures have also begun to have serious effects on our values, jeopardizing the foundations of European industry and the wider availability of key products.
Urgent and effective action is needed at European level. At this point, we expect you to take an active role.
Therefore, before the State of the Union (SOTEU) speech that will take place on 14 September and after the Extraordinary Energy Board on 9 September, we encourage the European Union to take urgent measures to limit natural gas prices across the EU; We also invite you to devise measures to separate electricity prices from gas prices.
Temporary state aid for the crisis also needs to be adapted to this new reality.
We thank you for your understanding and let you know that we are at your service if you have any questions.