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FSUOGM                                        COMMENTARY                                            FSUOGM














































       EU members still fail to see eye to





       eye on gas price cap






       Member states have conflicting about how the gas price cap should work in practice.




        EU               EU member states met again on September 30  Kadri Simson made clear there was still no con-
                         to discuss imposing a price cap on gas imports,  sensus on this issue.
       WHAT:             but there is still little consensus on what form the   “We will … try to negotiate a price corridor,
       EU member states have   measure would take.            not a fixed cap, that allows us to bring down the
       been unable to agree on a   Energy ministers from the 27 states approved  costs for our consumers,” she said at a news con-
       gas price cap.    levies on energy firms’ windfall profits, to help  ference. “A wholesale gas price is a legitimate
                         raise funds to shield households and companies  option, but it requires a radical intervention in
       WHY:              from soaring costs. The agreement includes a  the market.” She added that several “non-nego-
       France and Italy are   levy on fossil fuel companies’ surplus income  tiable conditions” would need to be introduced
       among those that want   made this year or next, and a second one on the  for the price cap to work.
       a blanket cap on all   excess revenues of low-cost power producers
       imports, while Germany   – namely those that do not use natural gas as a  Disagreement
       wants governments to   feedstock. The members also agreed to introduce  Germany, one of the countries hardest hit by
       subsidise supplies.  a mandatory cut on power use during peak price  cuts in Russian gas supply to Europe, has said
                         periods.                             it is opposed to an EU-wide price cap on gas
       WHAT NEXT:          Some countries feel this is still not enough to  imports. At a government conference in Berlin
       A blanket cap imposed on   adequately address the energy crisis, and some  on September 30, a spokesperson for Germany’s
       suppliers could prompt   have called on the European Commission to  economy ministry said that it instead favours
       them to divert their   propose capping the price of gas imports. Speak-  a gas price “brake”, whereby governments set
       shipments.        ing after the meeting, EU Energy Commissioner  a gas price and then cover the difference to the



       P6                                       www. NEWSBASE .com                        Week 40   06•October•2022
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