European Union energy commissioner Kadri Simson defended the bloc’s proposal to cap gas prices and said countries would negotiate possible adjustments to the proposal, after backlash from some members.
After months of skirmishes between European Union countries, due to disagreements on whether to cap energy costs, last week the European Commission proposed a price cap to be applied in the first month after the price of the gas exchange “Title Transfer Facility” exceeded 275 euros per MWh for two weeks and 58 euros above the reference price of LNG for 10 days.
The European Union’s proposal has sparked criticism from countries supporting capping gas prices to reduce high energy bills for citizens, as Poland’s Energy Minister described the proposal as a “joke ” and analysts have hinted that it was designed with standard so stiff that it would never be used.
“That wasn’t our goal … to propose something that will never be activated,” Simpson said during an event hosted by the Politico newspaper in Brussels on Wednesday.
Gas prices have gone up questyear in the European Union, as Russia cut gas shipments to Europe following its invasion of Ukraine.
Diplomats from EU countries will discuss the proposal on Friday, aiming to negotiate a final version for a meeting of energy ministers to approve in an emergency meeting on December 13.
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