EU gas price cap plan ‘not enough’, French minister says

France’s energy minister says EU industry needs “structural” reform of the European energy market to survive the current crisis, arguing that Brussels’ attempt to cap gas prices is “not enough”.

Agnes Pannier-Runacher, who came to discuss the gas price cap at an emergency meeting of energy ministers in Brussels on Thursday, said that the proposal of the European Commission this week is “certainly neither a structural reform nor a response to high gas prices in Europe. facing industry and endangering our economies. This is not enough text.”

Pannier-Runacher is one of several ministers who opposed the commission’s proposal to cap gas prices at €275 per megawatt hour. It was criticized by analysts who suggested it would not apply even when prices hit all-time highs in August.

Wholesale gas prices soared to record highs above €300 per MWh over the summer – the equivalent of more than $500 a barrel in oil terms – after Russia cut off supplies to Germany via Nord Stream 1, Russia’s biggest route to Western Europe.

Anna Moskva, Poland’s climate and environment minister, called it “a kind of joke” and said discussions on other measures to lower energy prices should be postponed until the cap is agreed.

“It’s winter. We need to discuss the gas price ceiling,” he said on Thursday.

The gift will only be triggered if the price of the month-ahead contracts on the Dutch TTF futures market exceeds that level for two consecutive weeks and the price is EUR 58 above the price of liquefied natural gas for 10 consecutive days.

At least seven countries, including Italy and Greece, have threatened to veto several other proposals designed to lower energy costs, such as a joint purchasing mechanism, unless the price cap structure is revised.