If the European Union decides on a gas prices cap, it is important to avoid third countries benefiting from cheaper gas-generated electricity, says Marius Vascega, head of the European Commission Representation in Lithuania.
“There are all sorts of additional nuances that we all need to work on. For example, whether we do not actually subsidise third countries by setting a cap, because electricity markets are interconnected and electricity can flow freely to other countries as well. If we set a price cap, we will have to apply some form of subsidy, and someone has to pay for it,” Vascega said.
It is also important to work out what share of electricity each EU member state generates from gas, he underlined.
“And here we have very different situations in different member states. So we still have to answer these questions and find solutions to put it all together in a concrete way,” Vascega said.
EU energy ministers are set to meet this week and will have to find solutions to ensure that a gas price cap does not affect the EU’s long-term gas supply contracts, he said.
“The other details that they will be talking about are about how to make sure that any price cap does not affect the EU’s existing long-term gas supply contracts,” according to Vascega. (LRT/Business World Magazine)