The EU can keep the gas price ceiling

The EU authorities are considering the possibility of extending the temporary restriction on gas prices due to the risks of supply cuts associated with current events in the Middle East and incidents on gas pipelines, including Balticconnector.

The European Commission is considering extending emergency measures introduced in February to prevent gas prices from rising. Brussels claims that the cost of gas is now 90% lower than last year, and there are «no signs of negative consequences» from the restrictions imposed. 

Nevertheless, conflicts in the Middle East and incidents on gas pipelines may affect gas supplies this winter. Therefore, the EU may look for ways to insure itself against similar problems in the future.

Recently, ten participating countries sent a document to the European Commission with a request to extend legislative measures that speed up the process of issuing permits for the construction of wind farms and solar power plants. This will help make renewable energy a priority source and reduce dependence on energy imports.

Recall that in February, the European Union introduced a temporary mechanism for correcting the gas market with a floating price limit, which is automatically activated when the gas price exceeds the set level (180 euros per megawatt hour). These measures were introduced for a year, but the European Commission may propose their extension.