EU drops Russian gas price cap plan
The bloc’s energy ministers met on Friday September 9 in Brussels.
They dropped the ceiling projects after the idea failed to gain widespread support.
Central and Eastern European member states that still source gas from Russia feared reprisals from Moscow.
Russian President Vladimir Putin had said he would completely cut off supplies if a cap was imposed.
However, ministers have agreed to claw back revenue from some power generators and will use the money to reduce consumer bills.
European energy prices are generally set by gasworks.
This leaves generators using nuclear, wind or coal raking in revenue, as their running costs have not increased as much or at all.
On Friday, some EU countries also argued for a general cap on all gas imports.
However, EU Energy Commissioner Kadri Simson said such a move would be risky:
“General price caps, including LNG imports, could present a security of supply challenge, as the LNG market is a global market. We are not in the top three LNG importing regions or countries, and there is very strong competition in the LNG market and right now it is very important that we can replace the declining Russian volumes with alternative providers.
The EU’s bargain plan will now be fleshed out in the coming days, with another meeting of energy ministers slated for later in the month.