15 EU Countries Call For European Gas Price Cap

Posted by African Examiner Europe, Latest Headlines Wednesday, September 28th, 2022

(AFRICAN EXAMINER) – Fifteen countries in the European Union (EU) have called for an EU-wide gas price cap as an emergency measure against high energy prices in a letter to Energy Commissioner, Kadri Simson.

The letter, on Wednesday, called for an immediate proposal for a maximum price for gas which should apply to deliveries from abroad such as imports from Russia and other countries but also for transactions within the EU.

EU countries already asked the commission to come up with a proposal for a gas price cap earlier this month but the measures presented so far focused only on windfall levies and demand in reduction.

A price cap is considered an even more drastic intervention in the market, sparking concerns that this can lead to third countries supplying less or no gas to EU countries and selling it elsewhere.

In their letter, the 15 countries argued that a price cap could curb inflationary pressures.

“It can be designed in such a way as to ensure security of supply and the free flow of gas within Europe, while achieving our shared objective to reduce gas demand,” the letter read.

Germany in particular had spoken out against a price cap after receiving virtually no more gas from Russia and purchasing instead more expensive supplies from other countries such as Norway.

The letter was signed by Belgium, Bulgaria, Croatia, France, Greece, Italy, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Slovenia and Spain.

EU energy ministers would meet on Friday in Brussels to decide on possible emergency measures.

NAN