EU chief open to gas price cap as ‘temporary solution’ to energy crisis

(EurActiv, 6 Oct 2022) A price cap on gas could be a “temporary solution” to the energy crisis while Brussels works on a new price index that better reflects the growing importance of liquified natural gas (LNG), European Commission President Ursula von der Leyen said on Wednesday (5 October).

Europe is facing an energy crisis caused by supply disruptions from Russia. This has pushed EU countries to look for alternative supplies on the global market, often in the form of LNG, which comes at a premium.

“Introducing a cap on gas overall is a temporary solution until we will have a new EU price index developed that ensures a better functioning of the market,” the Commission President said in a speech before the European Parliament in Strasbourg.

Brussels has already started to work on this. In a paper shared with EU member states last week, the Commission backed an alternative price benchmark for LNG to complement the existing Dutch-based TTF index, which has been buffeted by geopolitics and the dominance of Russian pipeline gas.

In Strasbourg, von der Leyen told lawmakers she will “lay out a road map” of upcoming measures that the European Commission will take. Those will be listed in a letter to EU heads of states ahead of an EU summit in Prague on Friday (7 October).

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EurActiv, 6 Oct 2022: EU chief open to gas price cap as ‘temporary solution’ to energy crisis