EU discusses measures to deal with energy crisis

• 1 year, 7 months ago (2022-09-05)
• David Flin

Distribution 108 Europe 1061

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EU energy ministers are to discuss special measures, including natural gas price caps and a suspension of power derivatives trading, to keep rising energy costs under control.

European leaders have been working for months to try to offset the impact of Russia’s squeeze on gas following the invasion of Ukraine. The decision by Gazprom to close the Nord Stream 1 pipeline brought an increased sense of urgency.

Germany, the country most affected by the closing of Nord Stream, has unveiled a $65 billion package to protect consumers.

The options to be considered by the EU energy ministers include limiting the impact of gas prices on power prices by temporarily capping the price of gas used for electricity generation; putting a price ceiling on gas imported from Russia; and the temporary exclusion from merit order of using gas for power production. Price setting on the electricity market is also an option being considered.