The majority of member states requested that the European Commission “consider” placing a cap on gas prices in the market to address growing energy costs, and the Commission stated that it was willing to do so.
According to Ursula von der Leyen, President of the European Commission, “Such a gas price restriction must be properly put up in order to maintain the security of supply.”
As a “first step towards structural reform of the European electricity market,” Von der Leyen stated that the commission was “ready to discuss setting a price ceiling for gas used in the production of electricity.” However, she continued, “We also have to discuss gas prices… which are related to industry and heating.
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In order to lessen the effects of Russia’s price manipulation, she added, “We will cooperate with member states to minimise gas prices and their swings.” She noted that “an increasing number of member states support this, and we are better prepared.”
She emphasised as well that establishing a cap on petrol prices generally would only be a “temporary solution” at a “extraordinary period.”
Ursula von der Leyen stressed that “it is essential that we maintain equal opportunities within the European Union in our single market”, without mentioning Germany, warning that “without a European solution, we are in danger of fragmentation.
Despite the fact that there are links between the price of gas circulating within Europe and the price of gas we purchase from abroad, a Commission spokesman told reporters that work on the proposal is still in progress and will be detailed in a letter to European Union leaders before Friday’s summit in Prague. He added that it concerns “the wholesale gas market in Europe” and does not directly affect the price paid for imported gas.
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In a resolution approved by the European Parliament on Wednesday, MEPs asked that the commission impose “immediate and comprehensive embargo on Russian (energy) imports” and “highest tariffs on gas imports.”
The European Commission had previously discussed capping the price of Russian gas alone, out of concern that doing so would favour producers who have other customers. However, 15 European nations, including France, Belgium, Italy, Spain, and Poland, demanded that a general cap be placed on wholesale gas prices, even though it is from Russia. Before the EU summit on Friday and the gathering of European energy ministers on October 11–12, the Commission is expected to make proposals in this regard.
Germany, the nation most reliant on Russian gas, has so far opposed the concept of regulating the price of gas imports, but Berlin is coming under pressure after a 200 billion euro national plan to safeguard its economy from rising energy prices was announced last week.
Author: “AFP.”
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