ELS #Energy - Growing pressure on gas price cap

Disregarding the request by 15 countries to impose a price cap on imported gas, the Commission seems to have decided to not propose legislation, but instead a non-paper with proposals and opinions regarding common purchases of natural gas.

Fifteen countries, including most coastal countries who directly receive most of the union’s imported LNG, sent a joint letter to Commissioner Simson calling for an urgent proposal of a price cap on all imported gas, Russian or not, to tackle high energy prices. Opponents to the measure, however, are mainly concerned that LNG could be diverted to other continents where prices might be higher, hence putting Europe’s security of supply at risk.

Although the Commission is distancing itself from the measure, the 15 signatories, despite falling short of the necessary votes, could actually still attain the support from other countries which remain undecided, like Sweden.

ELS Analysis is attentively following tomorrow’s EU energy ministers’ meeting, where discussion on a possible price cap on imported gas will definitely continue. Will the list of those in favor of a cap become longer, or will some of the Commission’s other tentatively suggested measures start to gain traction?

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