European Union countries’ energy ministers meet in Brussels on Monday to attempt to agree a cap on gas prices – their latest idea to tame Europe’s energy crisis but one that countries are still split over. | Reuters
Roughly a dozen countries including Belgium, Poland and Greece have demanded a cap below 200 eur/MWh to tackle the high gas prices that have inflated citizens’ energy bills and stoked record-high inflation this year after Russia cut off most of its gas deliveries to Europe.
With a few countries’ positions still unclear, some EU diplomats said both sides may have enough votes to block a deal. The EU price cap would not drop below 188 eur/MWh, even if the LNG price fell to far lower levels. If the LNG reference price increased to higher levels, then the EU cap would move with it, while remaining 35 eur/MWh above the LNG price – a system designed to ensure the bloc can bid above market prices to attract scarce fuel.
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