En Attendant Godot and Von der Leyen: Trans EU gas price cap to protect Europeans and EU industry

Such a cap on gas prices must be designed properly to ensure security of supply...etc

We use gas in three domains: industry, heating and electricity. Let me start with electricity. High gas prices are driving electricity prices. We have to limit this inflationary impact of gas on electricity – everywhere in Europe. This is why we are ready to discuss a cap on the price of gas that is used to generate electricity. This cap would also be a first step on the way to a structural reform of the electricity market.

But we also have to look at gas prices beyond the electricity market. We will also work together with Member States to reduce gas prices and limit volatility and the impact of price manipulation by Russia. In March, we have already offered this as an option. We have said that it can give an important signal that the EU will not pay any price for gas. We qualified such a price cap as having an immediate impact on price levels. But that it entails drawbacks, in terms of security of supply of gas. The situation has critically evolved since then.

Today, compared to March, more Member States are open for it and we are better prepared. Such a cap on gas prices must be designed properly to ensure security of supply. And it is a temporary solution to cater for the fact that the TTF – our main price benchmark – is no longer representative of our market that includes more LNG today. 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.
#sanctions #sanctionsonrussia #sanctionscontrelarussie #oilprice #oilprices #oilpricecap #importban #russianproducts #exportrestrictions
#gasprices #lng #electricity
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Related:
En Attendant Godot: EU announces new Sanctions to bring the Russian economy to its knees:
[https://youtube.com/shorts/hp3dORZMLes]
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En attendant Godot: European Commission to propose price cap on Russian gas :
[https://www.elethos.gr/2022/09/en-attendant-godot-european-commission.html]
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No Russian oil, gas in Europe if bloc imposes price cap:
[https://youtu.be/XdKBEuGncVE]