EU Commission urges member states to agree gas price cap
Ursula von der Leyen will push European Union (EU) leaders to reach an agreement for a gas price cap, after weeks of disagreements between member states over the proposal.
The President of the European Commission has announced she will establish a roadmap for gas price caps ahead of a meeting in Prague tomorrow.
EU governments have so far failed to finalise a gas price cap despite extensive talks between member states.
A majority of EU nations support some form of cap to contain prices and slash Russian war revenues.
France, Italy, Poland and 12 other member states have pushed for a broader price cap to target all wholesale gas trade last week.
However, Germany, Denmark and the Netherlands remain opposed to the measure.
The countries are concerned it could hamper supply security ahead of a challenging winter.
Von der Leyen believed the EU had to ensure individual members did not outbid each other for gas on world markets and drive prices up.
She also said the bloc needed to step up its negotiations with allies and considering joint procurement.
This would begin with gas used to generate electricity.
The Commission President has proposed a temporary solution in the form of a cap, until a new EU price index was in place.
She said: “It is a temporary solution until a new EU price index ensuring a better functioning of the market is developed. The Commission has kick-started work on this.”
This was hinted at yesterday by EU energy commissioner Kadri Simson.
She revealed the European Commission was considering multiple versions of a gas price cap.
The measure would target gas used in power generation and a temporary “flexible” limit on prices.
Russian squeeze drives up gas prices
Gas prices have soared to all-time highs this year amid growing concerns over supply shortages.
This follows a Russian squeeze on European gas flows.
Moscow has blamed the cuts on Western sanctions in response to the country’s invasion of Ukraine in February.
Since then, the EU has agreed emergency laws to fill gas storage.
It has finalised cuts that would become mandatory in a supply crunch.
The bloc has topped up supplies to 90 per cent of capacity, which has seen wholesale costs eased amid reduced fears of supply crunch this winter
It has also confirmed windfall profit levies to raise money to help consumers struggling with ultra-high energy bills.
Some countries have announced their own plans to ease bills.
Germany recently unveiled a £177bn support for households and businesses earlier this month.
Meanwhile, Hungary’s Foreign Minister Peter Szijjarto has confirmed a price cap for Russian oil proposed will not apply to pipeline shipments,
The measure is part of the European Union’s eighth round of sanctions against Russia