EU members try to find compromise for power market deal

Luxembourg, October 19: Energy ministers of European Union nations are meeting in Luxembourg on Tuesday, as they attempt to break a deadlock between Germany and France over the future competitiveness of industrial sectors.
The spat between the two European countries has been delaying an agreement on power market reforms.
"I expect it might take some time but overall the mood is favourable to reach a general approach today," EU energy commissioner Kadri Simson said on her arrival to the meeting of EU energy ministers in Luxembourg.
What are the proposed new rules?
In March, the European Commission proposed changes to the EU's electricity market after cuts to Russian gas supplies led to sky-rocketing EU power prices last year.
The new rules are aimed at protecting consumers from volatile fossil fuel markets with a shift to more long-term, fixed-price contracts.
Germany has raised concerns that a provision in the new regulation allowing subsidized prices for nuclear power could ultimately skew competition in the European bloc to the advantage of countries with vast nuclear power production, such as France.
"Anything that creates a distortion between nuclear and renewables is not good for Europeans because it will increase the European prices," French Energy Minister Agnes Pannier Runacher said on Tuesday.
She said that there should be no competition distortion if nuclear power has roughly the same cost as renewable energy.
What has Germany said?
German Economy Minister Robert Habeck said there was still work to be done to reach a deal.
"This is about ensuring a level playing field in Europe," Habeck said. "And this level playing field must not be undermined by special forms of energy markets."
Habeck's a member of Germany's Greens, who can trace their roots back in no small part to Germany's influential anti-nuclear movement.
Pressure to finalise legislation
Meanwhile, members of the 27-state bloc are divided. Central and eastern European countries that have their own nuclear expansion ambitions are putting their weight behind France. Non-nuclear powers like Belgium, Denmark, Luxembourg, Austria and others are backing Germany.
Finding a majority unless the divide can be breached, at least partially, could prove difficult.
Pressure is increasing on the EU countries to find some common ground which would enable them to enter negotiations with the European Parliament on the details of the legislation.
The reform must be completed within the next few months to avoid a risk of negotiations stalling or even restarting due to the upcoming European Parliament elections.
Source: Times of Oman