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    Greece backs 10-country motion on EU gas pricing cap: Press

Summary

Media reports suggest countries will urge Brussels to adopt a price cap for all wholesale gas trade.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Security of Supply, Corporate, News By Country, EU, Greece

Greece backs 10-country motion on EU gas pricing cap: Press

Greece has backed a letter to the European Commission pushing for a price cap on all wholesale gas transactions in the EU, Reuters reported September 26.

The proposal is being backed by a total of 10 EU member states, Reuters said, including Italy, Belgium, Poland, Romania and Malta. These countries plan to submit a letter asking the commission to look at a price cap at a meeting of EU energy ministers on September 30.

"We acknowledge the efforts made by the Commission and the measures it has put forward to face the crisis. But we have yet to tackle the most serious problem of all: the wholesale price of natural gas," said a draft of the letter seen by Reuters, to be submitted to EU energy commissioner Kadri Simson.

The EU is divided on whether a price cap should be applied only to Russian imports, or whether it should be extended to all non-EU gas supplies, in a bid to rein in inflation caused by soaring energy prices. The commission's chief Ursula von der Leyen proposed a package of emergency measures to limit energy inflation earlier in September, while avoiding a firm commitment to cap gas prices.

The draft letter argues a price cap would allow EU countries to contain "untenable inflationary pressures", but must also be designed in a way that ensures security of supply. But Germany, the Netherlands and Denmark have opposed price capping, arguing it would undermine energy flows in EU gas markets this winter.