EU Weighs Natural Gas Price Cap to Curb Soaring Energy Costs

Deep News03-12

The European Commission is considering measures to curb energy prices, including the possibility of imposing a cap on natural gas prices, President Ursula von der Leyen stated on Wednesday. The European Union had already begun drafting proposals to alleviate difficulties faced by various industries before the conflict in Iran led to a surge in oil and gas prices; affected businesses have reported that high energy costs are hindering their ability to compete with rivals. "When gas prices determine electricity prices, it is crucial to reduce the cost impact," von der Leyen told the European Parliament. "We are preparing multiple options: optimizing the use of power purchase agreements and contracts for difference; implementing state aid measures; and also exploring subsidies or price caps for natural gas." The proposal to cap gas prices may provoke disagreements among EU member states.

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