EU Set to Outline New Energy Crisis Measures - Gas Cap Unlikely

The EU Commission is set to propose further emergency measures to tackle the energy crisis today but a cap on gas prices is not expected to be included.

• The Commission will propose that the EU could, as a "last resort", set a temporary "maximum dynamic price" on gas trades at the TTF Dutch gas hub. Other EU gas trading hubs would be linked to this price through a "dynamic price corridor".
• The EU package includes other measures aimed at lessening the impact of high prices on consumers and businesses.
• The gas price cap is proving a difficult sell across EU nations with Germany and the Netherlands in particular citing concerns about the region being able to attract gas supplies from the international market if a cap was in place. The majority in favor have yet to agree on a mechanism by which the gas cap would operate.