How, when and whether to cap natural gas prices on a European scale will be dominated by another council of European Union energy ministers who want to have a joint plan to reduce high gas prices. energybut they have not been able to reach a compromise for several weeks now.

The 27 countries will consider next steps to contain prices and protect consumers from bill surges as Europe faces winter gas shortages from Russia and the looming threat of a recession due to rising costs of living.

“We must quickly find a solution applicable throughout the EU. National solutions are not the way forward,” a European Union spokesman told Reuters.

The energy ministers meeting today in Prague will try to reach clear instructions on what the European Commission should propose to the European Council in the context of EU measures. to solve the problem.

Impossibility of agreement

But 27 can’t seem to agree on exactly what they want.

With gas prices nearly 90% higher than they were a year ago, most governments say they want the cap but disagree on its design and scope. Some countries, such as Germany, the country with the largest gas market in the EU, are still against the idea.

The summit last week did not give a clear idea of ​​what the next steps were.

Talks were “moving on all fronts,” a European diplomatic source said: price ceilings were proposed for gas in general, for gas transported through pipelines, for gas used to generate electricity…

Another diplomatic source indicated that there were no signs of “unity” at the summit. “I would say expectations are low,” he added ahead of today’s council.

Others expressed the hope that a consensus was beginning to emerge. Several countries are leaning towards the “Iberian model” by limiting the gas used to generate electricity, the official said.

Spain and Portugal implemented the scheme in June, managing to drive down electricity prices in their markets. The idea is gaining support, but some countries are concerned that it will increase demand, as was found in Spain after its implementation.

EU member states, they hurried to carry out the retention of part of the excess profits of electricity producers in favor of consumers, as well as the joint introduction of restrictions on the consumption of electricity and natural gas.

But pressure for pan-European action is mounting, especially after Germany announced it would spend up to 200 billion euros to protect its consumers and businesses from high energy costs, which has upset other governments as support measures are proving to be very unequal from country to country. .

According to Reuters