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EU countries look to map out path to gas price cap

25 October 2022 11:57 (UTC +04:00)

European Union energy ministers will discuss a bloc-wide gas price cap on Tuesday, attempting to navigate their next steps although it is likely to be weeks before any final decisions, APA reports citing Reuters.

Europe has been scrambling to tame high energy prices after Russia slashed gas supplies following its invasion of Ukraine - sending gas prices skywards and pushing European power prices to record levels in August.

With no legal proposal for a price cap on the table yet, ministers meeting in Luxembourg are expected to debate the principles of how an EU gas price limit could work, as well as possible drawbacks.

But gas costs have tumbled in recent days, amid mild weather and as countries have filled storage tanks. Some EU diplomats suggested this could dampen momentum to cap energy costs, but others said a cap was still needed to guard against potential price spikes as Europe heads into winter.

The European Commission last week asked for countries' approval to draft a proposal for a price limit on trades at the Title Transfer Facility (TTF) Dutch gas hub, which could be triggered if prices spiked.