European Union (EU) leaders in Brussels have made progress in their discussions on measures to tackle the energy price crisis, with the chances of reaching an agreement on gas price caps increasing. However, no tangible decisions have been made yet, with the European Council instructing the European Commission to draw up concrete proposals and present them to Member States as soon as possible.
Despite the skepticism before the meeting, EU leaders acknowledged that a price cap on gas used for electricity generation could be a good solution, but that the European Commission (EC) would have to carry out a cost-benefit analysis.
It is not yet clear whether the gas price cap could be financed by the EU budget.
“We have taken decisions on capping gas prices for wholesale trade, on a price cap for gas used for electricity generation. And this is probably the biggest step forward compared to previous EC proposals,” President Gitanas Nauseda said after the European Council meeting in Brussels.
Nauseda stressed that the leaders had given their political approval to the gas price cap, but did not go into specific proposals, something to be done by EU energy ministers that were meeting in Luxembourg on October 25.
According to the Lithuanian president, if no consensus can be found in the coming weeks, an extraordinary European Council could be called at the end of November.
“I have the impression that there has been a debate about whether we will be able to reach an agreement, and perhaps many have been betting that we won’t. Perhaps we will pleasantly surprise the markets with this agreement,” Nauseda said.
“I am satisfied and now I am going to sleep easily,” Nauseda said when asked if he was satisfied with the decisions of the European Council.
The meeting’s communique underlined that the discussion on price caps for gas used for electricity generation must ensure that gas consumption did not increase. Concerns about financing should also be addressed.
The leaders also instructed the EC to make concrete proposals on joint gas purchases, a new gas pricing formula and a temporary dynamic control of gas prices.
The EU leaders underlined that the EC’s proposed joint gas purchases – which were expected to help the EU negotiate better prices for larger volumes – would be largely voluntary. The joint purchase will be mandatory for 15% of the gas needed to fill storage facilities. (LRT/Business World Magazine)
