The European Union has two proposals for setting maximum energy prices, which EU energy ministers will discuss on Friday, Czech Industry Minister Josef Sikela said on Tuesday, the CTK news agency reported, citing Reuters.

Sikela said the Czechs, who hold the EU presidency, are gathering member states’ views on proposals that include either decoupling the high price on the gas market from the price at power plants that generate electricity from the gas, or setting a cap on the price charged by producers with less expendable plants, such as those using renewable energy sources, nuclear fuel and coal.

EU countries are struggling to curb record electricity prices, which have risen sharply since Russia cut off most gas flows to Europe in response to sanctions and European support for Ukraine’s defense against a Russian invasion.

A draft EU document drawn up by the Czech presidency and seen by Reuters on Sunday said ministers would consider options including capping the price of imported gas, capping the price of gas used to generate electricity or temporarily withdrawing gas-fired power plants from the current EU. electricity pricing system.

It also offers liquidity provision for energy market participants.

A previous document on the European Commission’s future proposals said they should include a price difference for non-gas generators.

Options would also include cutting consumption across the EU and using revenue from price caps to help consumers pay their bills.

The reason electricity prices are skyrocketing is that the market price is set by the most expensive power plants operating to meet demand, which are now the plants using expensive gas.

Sikela said the separation of gas and electricity prices could lead to increased gas consumption, which is not a secondary issue.

Sikela said there was an agreement to lend to traders to increase market liquidity. He said the presidency plans to publish a summary of member states’ positions on Wednesday.

(article photo © Kontakt5956 | Dreamstime.com)