options for the EU leaders to discuss, after France, Italy, Poland and 12 other countries urged Brussels to propose an EU-wide gas price cap as a way to contain inflation.
She did not specify whether such a cap would apply to all gas trades and import contracts that are pegged to the TTF price, or have a more limited scope.paper analysing various options It suggested such a cap could work only if a new entity were launched to allocate and ship scarce fuel supplies between states.While a price cap would be a temporary fix, the Commission wants to implement a more lasting alternative price benchmark for gas in Europe.
Some industry sources have suggested the industry should develop a new benchmark on its own. Its success would depend on whether the gas industry uses it.Belgium, Greece, Italy and Poland put forward their own proposal on Thursday for a “dynamic price corridor” for gas. The gas price would be able to fluctuate within the corridor range, to keep providing price signals that direct supply to regions that need it, the document said, adding that it should also apply to long-term contracts that are pegged to existing gas price benchmarks.Von der Leyen said the EU should also consider an EU price cap specifically on gas used for power generation.
The Commission has said any interventions to lower gas prices must be coupled with measures to avoid driving an increase in gas demand when countries need to save scarce fuel.The Commission suggested a Russian gas price cap in September, but dropped the idea after resistance from central and eastern European countries worried Moscow would retaliate by cutting off the gas it still sends to them.
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