The European Commission on Friday promised to put forward a proposal on setting a “temporary gas price cap” ahead of a meeting of EU energy ministers on November 24, according to a Commission letter to EU ambassadors obtained by POLITICO.
The Commission has come under fierce pressure from a grouping of 15 member countries as well as European Council President Charles Michel to propose a gas price cap to rein in prices destabilized by Russia’s invasion of Ukraine. The Commission is opposed, as is a group of countries led by Germany and the Netherlands, which fear low prices will dissuade gas exporters.
An EU diplomat said a “crucial mass” of member countries wants “the full proposal to be tabled” before the November 24 meeting.
“The EU needs to have a mechanism in place that limits episodes of excessive gas prices such as those that we have known in August,” says the letter signed by Commission President Ursula von der Leyen and Czech PM Petr Fiala, whose country holds the Council presidency.
The Commission letter also says the EU needs to prepare for next winter when there will likely be almost no Russian gas on the market.
“Over next year, markets are likely to remain tight,” it says.
The Commission plans to boost efforts for countries to jointly buy gas and to look for gas from other suppliers.
Finally, the Commission aims to put forward a legislative proposal to “reduce the impact of gas on electricity prices” by early next year.
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