EU energy ministers are meeting in Brussels today in an attempt to reach an agreement on a ceiling on energy prices. natural gasafter many months of counterclaims and negotiations.

The European Commission proposed a cap price of 275 euros per MWh last month. However, EU member states continue to disagree on whether and to what extent this measure can ease the energy crisis in the Old Continent.

The initiative of 15 countries in favor of the cap (Greece among them) argues that the cap is necessary to protect their economies from high energy prices.

On the other hand, a bloc of hardliners (Germany, the Netherlands, Austria, Luxembourg, Denmark, Estonia) fears that this could cut supplies to Europe.

Low expectations

“Probably not a single Member State is satisfied with the proposal we are discussing,” admitted a senior European diplomat, calling the price cap “one of the most complex and difficult documents you can imagine.”

European diplomatic sources say they are not at all certain that a deal will actually be struck today. One of the options is to refer this issue to the European Council tomorrow and return to the ministers next week.

The head of the commission, Ursula von der Leyen, wrote down the collapse of the Council of Energy Ministers and, when asked by ERT about the next steps, replied that the decision should be political, referring to the summit at the end of the week.

Project

Any agreement will depend on technical details, such as how high the threshold will be, which contracts it will apply to, as well as points such as suspending the measure if it has undesirable consequences.

“We are moving in the right direction, but we have not yet reached it,” another European diplomatic source said.

The draft compromise, discussed over the weekend, provides that the cap will come into effect if prices rise above 220 euros per megawatt-hour for five days in short-term futures contracts on the Dutch Gas Exchange (TTF), and also if they are 35 euros higher. than the liquefied natural gas (LNG) benchmark.

Disagreements

This limit is well below the 275 euros per MWh proposed by the Commission. But more than ten countries, including Italy and Greece, would like to see the ceiling even lower.

Both camps – those who support the restriction and those who oppose gas prices – have enough votes to veto it.

France, which initially favored the cap but raised concerns last week about the potential impact on financial markets, is likely to be decisive, according to three European diplomatic sources.

Uncertain future

Last week, the Intercontinental Exchange warned that the European offer could lead to higher gas prices.

The European Central Bank, for its part, expressed concern that this could jeopardize financial stability.

The EU has already approved a number of emergency measures for energy this year, including a commitment to fill storage infrastructure.

However, limiting gas prices could decide the fate of other EU policies. on energy, in particular whether permits for renewable energy projects would be granted faster, as some governments have indicated that they will not approve them without a price cap agreement.

With information from APE-MPE, AFP, ERT