I have been partial witness to the (very-very difficult) birth of this price cap proposal, which was properly christened at birth a "market correction mechanism". And yes, there could have been a more solid proposal, despite the in-house opposition from the free-market fundamentalist and, outside, from the free-riding southern part of our continent that wanted a low gas price, preferably financed from the Union budget, and the more prudent north, who worried about security of supply and market stability.
I can tell you that at one point, smart people were looking at 10 different version of capping the gas price, including mandating an upper price limit for every single molecule of gas injected into _any_ part of the EU gas network.
But, as you noted, the EC choose to make this proposal actually un-implementable and for a good reason.
The next step is, I imagine, Ursula von der Leyen sending a little note to Charles Michel in effect saying "Are you happy now? Can we please focus on something else?"
I’m sorry the architects of this scheme didn’t include a third condition of these two weeks of prices occurring at a time when the moon was in the house of Aquarius ….
I like your fire extinguisher analogy. If I were unscrupulous and wanted my house to burn down so I could build a new one, I would try to have circumstances occur where my house burned down. Then I could rebuild it to suit myself. . . But surely they don’t want their house to burn down. . . Or do they? I can’t tell. They don’t seem to care too much for its occupants.
So convoluted that it will never get implemented, but just for good measure they will just make everybody spend billions in extra paperwork and extra margin capital.
For once Irina this gives me some hope. I look at my gas bill today and shake my head despite not using that much. I worry about the costs in future - particularly given your comments about the future prices. But! I think, what if prices go up to say £7000 here in the UK (they have gone from £1200 to £4200 in about 18mths). I reckon energy transition is dead. Completely. People simply won't accept it. So I'm starting to think there may be light at the end of the tunnel. Perhaps just one more yr of financial pain (and cold) and it could be over. Hurrah!!!!
The powers-that-be will lie to the public and tell them, "See, gas can no longer be affordable. We must switch everything to renewables because of the high price of gas."
And apparently the public will believe it. They've believed everything else so far no matter how far fetched, how many laws of physics are violated or how bad the math used (or not used).
I hope I'm wrong and there's a limit to the lies the public will swallow, but not seeing it so far.
There are people who don't swallow the lies, as evidenced by your blog. You don't deserve the consequences....But you'll get them anyway, if some larger fraction of the people doesn't start paying intelligent attention.
I agree. A lot of people don't deserve the consequences they are going to suffer and already suffering in fact. The silver lining is that sort of suffering makes people think and pay attention.
I have been partial witness to the (very-very difficult) birth of this price cap proposal, which was properly christened at birth a "market correction mechanism". And yes, there could have been a more solid proposal, despite the in-house opposition from the free-market fundamentalist and, outside, from the free-riding southern part of our continent that wanted a low gas price, preferably financed from the Union budget, and the more prudent north, who worried about security of supply and market stability.
I can tell you that at one point, smart people were looking at 10 different version of capping the gas price, including mandating an upper price limit for every single molecule of gas injected into _any_ part of the EU gas network.
But, as you noted, the EC choose to make this proposal actually un-implementable and for a good reason.
The next step is, I imagine, Ursula von der Leyen sending a little note to Charles Michel in effect saying "Are you happy now? Can we please focus on something else?"
That would be a great way of getting back at him for taking that chair during the meeting with Erdogan, I think, and leaving her standing.
I’m sorry the architects of this scheme didn’t include a third condition of these two weeks of prices occurring at a time when the moon was in the house of Aquarius ….
Yes, that would have made for a nice final touch. And Pisces ascending.
I like your fire extinguisher analogy. If I were unscrupulous and wanted my house to burn down so I could build a new one, I would try to have circumstances occur where my house burned down. Then I could rebuild it to suit myself. . . But surely they don’t want their house to burn down. . . Or do they? I can’t tell. They don’t seem to care too much for its occupants.
So convoluted that it will never get implemented, but just for good measure they will just make everybody spend billions in extra paperwork and extra margin capital.
Brussels baby, gotta love it.
Bakers in europe are being destroyed by people who want us to eat insects. Its tragic.
For once Irina this gives me some hope. I look at my gas bill today and shake my head despite not using that much. I worry about the costs in future - particularly given your comments about the future prices. But! I think, what if prices go up to say £7000 here in the UK (they have gone from £1200 to £4200 in about 18mths). I reckon energy transition is dead. Completely. People simply won't accept it. So I'm starting to think there may be light at the end of the tunnel. Perhaps just one more yr of financial pain (and cold) and it could be over. Hurrah!!!!
There's always a silver lining, yes.
The powers-that-be will lie to the public and tell them, "See, gas can no longer be affordable. We must switch everything to renewables because of the high price of gas."
And apparently the public will believe it. They've believed everything else so far no matter how far fetched, how many laws of physics are violated or how bad the math used (or not used).
I hope I'm wrong and there's a limit to the lies the public will swallow, but not seeing it so far.
Well, if there is no limit to the lies people can swallow, then they deserve the consequences of these lies.
Collective guilt is a messy concept...
There are people who don't swallow the lies, as evidenced by your blog. You don't deserve the consequences....But you'll get them anyway, if some larger fraction of the people doesn't start paying intelligent attention.
I agree. A lot of people don't deserve the consequences they are going to suffer and already suffering in fact. The silver lining is that sort of suffering makes people think and pay attention.