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Free AccessEU Gas Price Cap Draws Criticism
EU ministers have questioned the purpose of the proposed 275 euro per megawatt hour price cap for European gas if it is unlikely to ever be triggered.
- “A price cap at the levels that the commission is proposing is not in fact a price cap,” Kostas Skrekas, Greece’s environment and energy minister said, “So [a] price cap at 275 euro is not a price cap, nobody can, can stand buying gas at this expensive price for a long time. We surely believe that the price cap below 200 euro, between 150 and 200 euro would be more realistic,” he added.
- EU energy ministers are due to meet Thursday to debate the price cap proposal.
- “It will be a meeting with grumpy people,” CNBC quoted a senior EU official as saying.
- Poland, Greece, Belgium and Spain are among the nations supporting the cap, while Germany and the Netherlands have pushed back against the idea. The high level of the cap and its time duration is much more likely to be supported by all nations due to its unlikely use.
- Kadri Simson, the European commissioner for energy, said the proposal is “balanced” and it will help the bloc avoid excessively high prices.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.