Europe’s Energy Exchanges Warn Gas Price Cap to Backfire on EU
- Europex sees security of supply at risk with EU proposal
- Commission wants to present its regulation this week
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Europe’s leading energy exchanges warned that a planned cap on natural gas prices poses a serious threat to the region’s security of supply and financial stability, and will do little to achieve its goal of lowering energy costs.
The European Commission’s plan to propose a limit on benchmark gas prices this week will have “potentially irrevocable negative effects” on the functioning of the region’s energy markets lasting well beyond the current crisis, the Association of European Energy Exchanges wrote in joint letter. The commission hasn’t yet unveiled the exact parameters for the last-resort mechanism.