# EU seeks to break impasse over gas price caps, ‘no regret’ plan floated Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-12 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU Countries Grapple with Gas Price Cap Compromise Meta Description: Explore how EU countries plan to cap gas prices to shield consumers from soaring bills amid scarce Russian gas and looming recession threats. URL: https://financedigest.com/eu-seeks-to-break-impasse-over-gas-price-caps-no-regret-plan-floatedhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-12t041017z2lynxmpei9b061rtroptp4ukraine-crisis-eu-energy-1736815038314-compressed.jpg) By Kate Abnett and Robert Muller PRAGUE/BRUSSELS (Reuters) – The question of how, when and whether to cap gas prices loomed over another meeting of European Union countries on Wednesday, as they pursue a joint plan to target high gas prices – a compromise that has eluded them for weeks. The 27-country EU is plotting its next move to tame soaring energy prices and shield consumers from surging bills, as Europe heads into a winter of scarce Russian gas, a cost of living crisis and the looming threat of recession. EU energy ministers meeting in Prague will attempt to provide clearer instructions on what the European Commission should [propose](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") as the bloc’s next emergency energy measure. “We’re all agreed we do need to do something further. The exact mechanisms may take some [time,” Irish](https://www.financedigest.com/ogrady-to-return-to-bank-of-ireland-as-ceo-irish-times.html "O’Grady to return to Bank of Ireland as CEO – Irish Times") climate minister Eamon Ryan said. EU energy commissioner Kadri Simson said Brussels would propose fresh measures next week, and any further EU-wide measures should be [backed by “broad consensus” among countries](https://www.financedigest.com/as-who-pandemic-pact-talks-begin-poor-countries-on-back-foot.html "As WHO pandemic pact talks begin, poor countries on back foot"). So far, that has been hard to find. With gas prices almost 90% higher than a year ago, most EU countries [say they want a gas price](https://www.financedigest.com/buy-off-plan-to-beat-stalling-house-prices-and-falling-rental-yields-says-jean-liggett.html "“Buy off-plan to beat stalling house prices and falling rental yields” says Jean Liggett ") cap, but disagree on its design – with a price cap on all gas, pipeline gas, or just gas used to produce electricity among the options countries have wrangled over in recent weeks. There is much more [common ground than we had a few weeks ago,” Dutch climate](https://www.financedigest.com/eu-countries-seek-common-stance-on-climate-compensation-for-cop27.html "EU countries seek common stance on climate compensation for COP27") minister Rob Jetten said on Wednesday. Jetten said that countries had discussed the risks of decoupling gas and power prices – possibly through a programme similar to that of Spain and Portugal’s national scheme to [cap](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed") the price of gas used for power generation – and it was now up to the Commission to find a proposal that all could agree on. Spain and Portugal implemented their scheme in June, which helped [curb local power prices](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries"). A senior EU official said support was building among members to roll it out EU-wide – although some [warn it could raise gas demand](https://www.financedigest.com/inpost-sees-stronger-2022-but-warns-of-slowing-demand.html "InPost sees stronger 2022 but warns of slowing demand") across the bloc, since Spain’s gas use increased under the measure. Romania supports the decoupling of the [price of electricity from the price of gas,” the country’s](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop") energy minister Virgil-Daniel Popescu said on his arrival to the meeting. Russia has slashed gas deliveries to Europe since its invasion of Ukraine, blaming the cuts on Western [sanctions imposed](https://www.financedigest.com/new-u-s-sanctions-imposed-for-russian-bank-oligarchs-crypto-miner-bitriver.html "New U.S. sanctions imposed for Russian bank, oligarchs, crypto miner BitRiver") over the conflict. That has driven up [prices and left countries scrambling to secure alternative supplies](https://www.financedigest.com/oil-prices-extend-gains-with-falling-supplies-in-focus.html "Oil prices extend gains with falling supplies in focus"). Germany and the Netherlands are among the countries opposed to a broad gas price cap, fearing it would leave Europe struggling to attract [supplies from price-competitive global markets this winter](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says"). The two countries put forward their own proposals ahead of Wednesday’s meeting – suggesting 10 “no-regret” EU measures, including a new benchmark price for liquefied natural gas, tougher gas-saving targets, and [negotiating lower prices](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") with suppliers such as Norway. Norway’s energy minister Terje Aasland, who joined Wednesday’s meeting along with other European non-EU members, said his country “doesn’t recommend” a gas [price cap](https://www.financedigest.com/factbox-u-s-offers-new-details-on-plan-to-cap-russian-oil-prices.html "Factbox-U.S. offers new details on plan to cap Russian oil prices"). EU countries have already rushed through emergency energy windfall profit levies, gas storage filling obligations, and electricity demand curbs to address the [surge in energy prices](https://www.financedigest.com/explainer-oil-price-surge-changes-ecb-narrative-only-at-the-margins.html "Explainer-Oil price surge changes ECB narrative only at the margins") driven by Russia slashing gas supplies. But the pressure to agree more EU-wide measures has [increased after Germany said it would spend up to 200 billion euros to shield its consumers and businesses](https://www.financedigest.com/frances-ynsect-to-refocus-bug-business-after-capital-increase.html "France’s Ynsect to refocus bug business after capital increase") from high energy costs – prompting a backlash from some countries about the uneven rollout of national support. (Reporting by Kate Abnett, Robert Muller, Marine Strauss, Jason Hovet, Alan Charlish, Miranda Murray; Editing by John Chalmers, Tomasz Janowski and Louise Heavens) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---