EU Gas Cap Remains Elusive as Discussions Continue

EU plans to impose a gas cap this week have been derailed by disagreements between member states on a price level. The proposed 275 euro per megawatt hour was seen as a way of bringing Germany and the Netherlands on board and for the EU to be seen to be making a stand against soaring prices, which many member states are struggling to pay.

• However, due to the unlikely nature it would ever be triggered, a strong contingent of EU nations such as France, Poland and Greece described it as “unenforceable” and “a bad joke” and have not lent it their support.
• The EU did agree in principle on a joint gas purchasing platform for next year and the acceleration of permits for renewables. Formal adoption of these measures will wait till the next meeting – likely December 13 – as the price cap question takes precedence.
• Discussions between EU member states are going on behind the scenes to try and find common ground on a gas cap but with such divergent opinions on its level, a date for an outcome and its level are currently unclear.