Latest News

EU readies energy package, countries split over gas price cap

0

EU readies energy package, countries split over gas price cap By Reuters

Breaking News

‘;

Commodities 12 minutes ago (Sep 12, 2022 11:21)

3/3
© Reuters. FILE PHOTO: The gas compressor station, a part of Polish section of the Yamal pipeline that links Russia with western Europe which is owned by a joint venture of Gazprom and PGNiG but it is operated by Poland’s state-owned gas transmission company Gaz-Sys
2/3

By Kate Abnett

BRUSSELS (Reuters) – The European Union is set to unveil a package of proposed emergency measures this week including a windfall profit levy on energy firms, but countries are split over the details and whether to impose a cap on gas prices.

At a meeting on Friday, EU countries’ energy ministers asked the European Commission to draft measures to skim off excess revenues from non-gas power generators, cut EU-wide electricity use, and help power firms in need of emergency liquidity.

In a bid to pull down soaring energy bills for citizens and businesses ahead of winter, the ministers also asked Brussels to also propose a gas price cap, according to a meeting summary by the Czech Republic which holds the EU’s rotating presidency.

But with the EU due to publish its proposals as early as Tuesday, countries disagree on whether a gas price cap would ease or exacerbate Europe’s energy crisis, diplomats said.

“On the cost of gas, we continue to work on answers adapted to a global market,” von der Leyen said in a tweet on Saturday.

The proposal should lower prices in Europe “while guaranteeing security of supply”, she added.

Diplomats said more than half of the EU’s member states had made mention of gas price caps in Friday’s meeting – but with little consensus on what form this should take, be it a price cap on all imported gas, pipeline flows, wholesale gas trading, or supplies from Russia.

“The majority talking about gas price caps weren’t aligned,” one EU diplomat said.

The EU’s 27 member states will need to approve the energy measures, possibly at another emergency meeting of ministers this month.

Russia supplied around 40% of the EU’s gas before its invasion of Ukraine. That share has plummeted to 9%, as Moscow has cut supplies to Europe, blaming the cuts on technical issues caused by Western sanctions.

EU ministers ultimately backed away from a price cap on Russian gas, which countries including Hungary and Austria had warned could see Moscow cut off the dwindling supplies it still sends to the EU.

Germany, the Netherlands and Denmark are among those opposed to a general gas price cap, warning that it could risk Europe’s winter energy security by leaving countries struggling to attract supplies in the price-competitive global market for liquefied natural gas.

Others, including Italy and Poland, say gas price caps would offer relief to households and industries that have been forced by rocketing gas costs to curb production.

EU readies energy package, countries split over gas price cap

Gusher of pandemic aid averted global depression, but left a bad hangoverBy Reuters – Sep 12, 2022

By Howard Schneider WASHINGTON (Reuters) – Economists around the world, from the most liberal free-spenders to fiscal conservative deficit hawks, largely agreed the coronavirus…

Bank of England to suspend market operations on Sept. 19By Reuters – Sep 12, 2022

LONDON (Reuters) – The Bank of England said on Monday that it would suspend its CHAPS interbank payment services and sterling money market operations on Sept. 19, the day of Queen…

Euro jumps on hawkish ECB signals, softer dollarBy Reuters – Sep 12, 2022

By Kevin Buckland and Alun John TOKYO/LONDON (Reuters) – The euro jumped to a more than three-week peak versus the dollar on Monday, as European Central Bank officials argued for…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Gusher of pandemic aid averted global depression, but left a bad hangover

Previous article

Bundesbank’s Nagel: Further Clear Rate Steps Needed Despite Recession Risk

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News