Diversification and gas-electricity decoupling: EU remedies for high energy prices

BRUSSELS - The military intervention decided by the United States and Israel against Iran, as well as Tehran's retaliation, are having repercussions that go far beyond the political aspect. In Europe, the sharp rise in oil and gas prices is coming as the Twenty-Seven are attempting to diversify their sources of supply and reduce energy prices in order to boost the economy's competitiveness. The idea of decoupling the price of gas from the price of electricity is back in vogue.

The European Commission announced a special meeting of the College of Commissioners on Friday 6 March, all focused on the energy issue. "Our aim is to protect businesses and consumers," explained EU executive spokeswoman Paula Pinho. The European Commission itself wants to reassure: 'There is no immediate problem for energy security, also because we are at the end of the winter season'.

Hit by Iranian drone attacks in recent days, a major Qatari plant has stopped producing liquefied gas for export. The direct impact for Europe is limited - in the third quarter of 2025, only 6% of the gas imported by the Union came from the Arab emirate. However, Qatar's choice caused a worldwide price spike. In Europe, gas prices rose by as much as 75%.

"The European Union has made it clear that it wants to break free from Russian oil and gas, but the events of the past three to four days have made this goal difficult," Norwegian Energy Minister Terje Aasland said in Oslo. "Given the current geopolitical situation, I think the debate will pick up again." Under these circumstances, the Europeans are unlikely to go back on their decision to stop all hydrocarbon imports from Russia from 2027.

At the same time, it is clear that the new situation is worrying, all the more so because in many countries even before the military intervention against Iran, energy prices were already undermining the competitiveness of the economy. In an article, Simone Tagliapietra, a researcher at Bruegel, suggested monitoring a possible diversion of cargo ships to Asia, as well as preparing both a possible strategy to reduce consumption and coordination in the management of national reserves.