The energy ministers of Greece, Romania and Bulgaria have called on the European Commission to tax the windfall profits of electricity producers and traders and prioritize the development of energy interconnections in Southeast Europe.
As announced by the Greek Ministry of Environment and Energy, on the initiative of Minister Thodoros Skylakakis, a joint letter was sent on Friday to EU Energy Commissioner Kadri Simson. The letter was co-signed by Romania’s Energy Minister Sebastian-Ioan Burduja and Bulgaria’s Energy Minister Vladimir Malinov. In the letter, the ministers requested measures to address the sharp rise in wholesale electricity prices in Southeastern Europe, observed during the past summer.
The ministers stressed that price volatility in Southeast Europe has placed significant pressure on the region’s economies, threatening both energy security and market stability.
In their letter, they highlighted critical issues such as the lack of interconnection capacity, the fragmentation of energy markets and the limited flexible production capacity. Geopolitical factors and supply security challenges were also mentioned.
The letter underscores the need for both short-term and long-term measures.
Regarding short-term measures, the ministers emphasized the need for immediate actions, such as taxing the excess profits of electricity producers and traders. The revenue from this taxation could be redistributed to alleviate consumer burdens and stabilize the market in the short term. They also called for stronger cooperation between national regulatory authorities to monitor the market effectively.
For long-term measures, they stressed that the European Commission should prioritize the development of key interconnection infrastructure in Southeast Europe.
The primary demands presented by Greece, Bulgaria and Romania to the Commission are:
⦁ Prioritizing the development of interconnection networks in Southeast Europe to bridge the infrastructure gap that isolates the region from the broader EU market.
⦁ Increasing cross-border interconnection capacity to promote price convergence within the single market, especially during periods of peak demand.
⦁ Implementing short-term financial measures, such as taxing the windfall profits of producers, to stabilize the market and provide relief to consumers.
⦁ Enhancing market coupling and regional cooperation to promote price harmonization and improve energy security across Southeast Europe.
The letter to the EU Energy Commissioner was accompanied by a joint technical memorandum prepared by Greece, Bulgaria and Romania, outlining the primary factors driving the increase in energy prices. The document also emphasized that coordinated action at the EU level is essential to tackle the challenges and ensure the resilience of the energy market in the region.
