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EU Leaders to Discuss Electricity Price Reforms at March Summit

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European Union leaders will meet in March to explore measures aimed at reducing electricity prices, with options including decoupling electricity from gas costs and addressing the rise of negative energy prices, where producers effectively pay consumers for surplus power.

Energy-intensive industries such as steel, cement, and chemicals have long complained about high electricity costs, which have forced the closure of hundreds of production sites across the EU. Since February 2024, 101 chemical plants have shut down, resulting in the loss of 75,000 jobs and 25 million tonnes of production capacity. Electricity prices in the EU now remain roughly double those in the United States, raising concerns over the bloc’s industrial competitiveness.

European Commission President Ursula von der Leyen and European Council President António Costa have both acknowledged the urgency of the issue. In March, Brussels plans to consider revisiting the current pricing system, in which electricity costs are linked to gas prices. Spain and Portugal have long called for reform of the market design, aiming to improve connectivity with the rest of Europe and address competition concerns. Austria and the Czech Republic have also criticized soaring energy costs, calling for urgent solutions.

The EU’s merit order system, which sets electricity prices based on the most expensive resource needed to meet demand, has contributed to high industrial costs. In 2025, renewable energy averaged €24 per megawatt-hour, nuclear €52, and gas €100. Von der Leyen said that leaders held “intense discussions” on whether adjustments to the system were needed to improve affordability.

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The EU has introduced mechanisms such as Contracts for Difference and Power Purchase Agreements to complement the merit order system. These measures include caps and floors and are sometimes backed by state guarantees, but they have not fully resolved the gap between EU electricity costs and international competitors.

The European steel industry, Eurofer, welcomed von der Leyen’s renewed focus, noting that even a single fossil-fuel plant can determine the price for all electricity, inflating industrial bills. Eurofer warned that high electricity costs are delaying investment and the transition to green technologies.

Negative energy prices are also shaping the debate. Oversupply from renewables can force generators to pay the grid to accept excess power, a phenomenon Council President Costa said highlights the need for better interconnections and technical solutions.

Industry experts say expanding storage and demand-side management is key to reducing volatility. Tinne Van der Straeten, CEO of WindEurope, called for greater investment in grid infrastructure and energy storage to ensure that companies can use renewable power when it is abundant. Catarina Augusto of SolarPower Europe added that scaling up battery storage tenfold by 2030 and improving flexibility in energy systems is essential to prevent waste and stabilise prices.

With electricity costs threatening industrial competitiveness and green transition goals, EU leaders face pressure to implement practical reforms at the March summit.

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US Sanctions Cuban Oil Company Escalate Tensions Amid Deepening Energy Crisis

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The United States has imposed new sanctions on Cuba’s state-owned oil and gas company Cupet, a move that is expected to further strain already fragile relations between Washington and Havana and deepen the island’s ongoing energy crisis.

The announcement was made on Thursday by US Secretary of State Marco Rubio, who said the measures target key assets of Cupet that he claimed were “unlawfully expropriated from American owners years ago.” The decision comes as Cuba continues to grapple with severe fuel shortages, rolling blackouts, and a strained national grid that has struggled for years under limited investment and reduced oil imports.

Rubio accused Cuban authorities of “weaponising energy” and using fuel distribution as a tool of political control. He alleged, without providing evidence, that government officials divert scarce energy supplies for military and security use while rationing fuel for the general population. He also said Cuban officials were reselling fuel on secondary markets, further worsening shortages on the island.

The Cuban government has not issued an immediate response to the latest sanctions. In previous statements, it has consistently argued that US restrictions are designed to cripple the economy and place pressure on ordinary citizens rather than the political leadership.

Cupet, which oversees Cuba’s fuel imports, refining, and distribution, operates in a heavily restricted environment. Fuel sales to the public have been severely limited in recent months, with rationing becoming widespread as the country faces one of its worst energy shortages in years.

The sanctions follow earlier US measures targeting Cuban President Miguel Díaz-Canel and other senior officials, further expanding Washington’s pressure campaign on the island’s leadership. US officials have framed the actions as part of a broader effort to push for political and economic change in Cuba.

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Energy shortages in Cuba have worsened over the past five years, driven by aging infrastructure, reduced foreign oil supplies, and tighter international financial constraints. The situation has resulted in frequent power outages, disruptions to public transport, and shortages of essential goods.

Some analysts say the new sanctions could intensify humanitarian challenges on the island. Critics also argue that restricting access to energy infrastructure may complicate efforts by private operators and humanitarian suppliers who rely on state-controlled systems to distribute fuel.

US officials, however, maintain that the measures are aimed at limiting what they describe as the Cuban government’s misuse of resources and its control over strategic sectors of the economy.

With tensions rising and diplomatic engagement limited, the latest sanctions mark another escalation in a long-running standoff between the two countries, with no immediate sign of de-escalation.

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Trump Welcomes Rising Inflation Data as Energy Prices Surge Amid Iran Conflict

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US President Donald Trump has reacted unexpectedly to new economic data showing that inflation in the United States rose to an annual rate of 4.2% in May, saying during a White House briefing that he “loved the inflation” and describing the figures as “great.”

The latest rise in consumer prices comes as the ongoing conflict with Iran continues to disrupt global energy markets. Inflation has accelerated steadily since the beginning of the year, climbing from 2.4% in February, before the outbreak of hostilities, to 3.3% in March and 3.8% in April. The sharpest pressures have come from energy costs following turmoil in the Strait of Hormuz, a vital route for global oil and gas shipments.

Speaking to reporters, Trump dismissed concerns over rising prices and suggested that the United States was managing energy flows through covert operations in the region. He claimed Washington had been “taking out millions of barrels of oil” and referred to undisclosed naval activity in the Gulf. He also said oil prices, currently around $85 per barrel, reflected the impact of recent military actions.

The president, who campaigned on bringing down inflation, acknowledged that the conflict had affected financial markets but maintained that the consequences were justified. He reiterated his position that military action was necessary, arguing that Iran was close to acquiring nuclear weapons. “We have to go and attack,” he said, defending the decision to escalate involvement in the region.

According to official data from the US Bureau of Labor Statistics, energy prices have risen 23.5% over the past year, while gasoline costs have surged by 40.5%, placing additional pressure on households and businesses.

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The economic impact is expected to remain a key issue ahead of November’s midterm elections, where voters will decide control of Congress. Rising living costs are already shaping political debate, with critics warning that higher prices could erode household purchasing power.

Among those responding to Trump’s remarks was Senator Bernie Sanders, who criticised the administration’s handling of inflation. In a social media post, he argued that working families were bearing the brunt of rising costs, particularly for fuel, groceries and essential goods, and blamed government policy for worsening economic pressures.

As inflation continues to climb, attention is expected to remain focused on how the administration balances military strategy abroad with economic stability at home.

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Trump Abruptly Ends NBC Interview After Clash Over 2020 Election Claims

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US President Donald Trump abruptly ended a televised interview with NBC after a heated exchange over his repeated claims of fraud in the 2020 presidential election, walking out mid-conversation during a segment that aired over the weekend.

The interview, conducted on Friday and filmed at a farm in Wisconsin, was set against a rural backdrop featuring a tractor and hay bales as Trump spoke to local farmers. The setting was repeatedly disrupted by heavy rain and strong winds, with audio interference making parts of the conversation difficult to follow.

At several points, Trump reacted to the weather conditions, asking, “Is that wind or what?” and later commenting on the sound of thunder, lightning and rain as it intensified outside. Despite the interruptions, host Kristen Welker attempted to continue the discussion, checking with production staff about whether to pause.

Tensions escalated when the conversation turned to Trump’s past claims about election integrity. When challenged, Trump rejected the line of questioning and accused the broadcaster of bias, saying, “You’re a one-sided, crooked network. Sorry. Let’s call it quits because I’ve had enough.”

He then stood up and left the interview, which was being conducted with Kristen Welker for the programme Meet the Press.

Before walking out, Trump also responded to questions on foreign policy, including the situation involving Iran and broader US military strategy. He defended his administration’s defence posture, stating, “Why would I have built the strongest military in the world?” while insisting he did not support prolonged wars.

The exchange became increasingly tense when Welker questioned Trump about a proposed taxpayer-funded initiative aimed at compensating individuals he claims were unfairly targeted during the Biden administration. Trump defended the idea, while also attacking what he described as “fake” and “crooked” media coverage.

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Welker pushed back, stating there was no evidence supporting some of the claims raised. Trump repeated his assertion that the 2020 election had been “rigged” and also suggested without evidence that recent political contests had been compromised.

As the interview deteriorated, Trump said, “You are either crooked or you’re stupid,” before exiting the camera frame while Welker attempted to continue the exchange.

Following the incident, Welker told viewers that she had spoken with Trump the next day regarding the weather disruptions during filming, and that he had indicated willingness to participate in another interview at a later date.

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