EU Fails To Agree Gas Price Cap Amid Deep Divisions
Umer Jamshaid Published November 24, 2022 | 06:44 PM
EU energy ministers failed Thursday to agree a cap on gas prices to mitigate the energy crunch in Europe amid deep divisions over an initial proposal slammed by many as a "joke"
Brussels, (APP - UrduPoint / Pakistan Point News - 24th Nov, 2022 ) :EU energy ministers failed Thursday to agree a cap on gas prices to mitigate the energy crunch in Europe amid deep divisions over an initial proposal slammed by many as a "joke".
He added that the ministers did manage to adopt a couple of other "important measures", including joint gas purchases to avoid intra-EU competition driving up prices, supply solidarity in times of need, and hastening authorisation of renewable energy sources.
Several ministers going into Thursday's meeting complained that the gas price cap proposal on the table, unveiled by the European Commission just two days earlier, was clearly designed to never be used.
The Polish and Spanish energy ministers called the proposal a "joke".
But it comes with so many conditions attached that it would not even have been activated back in August, when the gas price briefly soared above 300 euros, alarming Europe used to historic prices around 10 percent of that.
- Drop in Russian gas - The cap proposal would only be triggered if the 275-euro limit was breached continuously for at least two weeks, and then only if the price for liquified natural gas (LNG) rose above 58 euros for 10 days within that same two-week period.
The commission's proposed price cap was seen as neutered under pressure from members including Germany and the Netherlands, which feared a cap could divert gas supplies to more lucrative markets, especially Asia.
That has now dropped to less than 10 percent.
EU energy commissioner Kadri Simson acknowledged the divisions over the price cap as she went into the meeting.