Energy ministers from the European Union gathered for an extraordinary session to assess urgent steps aimed at softening the impact of high gas prices on Europe’s energy system. The meeting would allow the energy commissioner to present five proposals introduced this week by the Community Manager, including a cap on gas prices and mandatory electricity-saving measures, while listening to the Twenty-Seven’s positions to shape a concrete plan. The question looms: will the measures be ready in the near term? The ministerial leader stressed that the ideas on the table are not exclusive and could be approved in tandem. He urged decisive action now, noting that sooner is better than later.
The Council of Energy Ministers convened on Friday amid disagreements within the Twenty-Seven about the European Commission’s proposals for addressing the energy crisis caused by the halt of Russian gas and the war in Ukraine. A central point of controversy is the proposal to cap Russian gas or other imported gas, a division that signals a likely lack of immediate consensus. This would leave the European Commission to craft a new proposal that can secure broader agreement to manage the energy emergency more effectively.
Teresa Ribera, Vice President and Chair of the Ecological Transition, acknowledged that the union was late in the discussion she had raised a year earlier when prices began to surge. The debate, she said, could have started sooner to help Europe avoid the sharp energy costs seen in recent months, with regulatory tools and raw materials being mobilized in a way that felt like an instrument of war and destabilization in Europe. She warned that European regulation is not fully prepared for stressful situations and needs improvements to withstand future shocks with urgent, exceptional measures to lower prices and to reassess how the wholesale market will function at the European level.
The discussions highlighted two main lines of tension: Spain’s constructive stance and the Commission’s willingness to share experience on implementing many measures proposed in its reflections. Ribera argued that a plan to reduce electricity prices must come with a fair contribution from all operators, noting that the reduction cannot rely solely on public budgets or tax cuts. She emphasized the importance of a system that balances rates and contributions across the sector, pointing out that some major energy players have seen sharp revenue growth. A collaborative effort across all market participants is essential to achieve meaningful price relief.
Spain has not closed the door on addressing gas prices from the top. The debate includes how prices are structured and the role of market participants who trade the raw material, including where they buy and sell and at what prices. The market remains opaque in places, and there is a need to clarify whether signals can guide gas purchases from Russia via pipeline or other sources and under which conditions such signals would apply. Questions about the ultimate price Europe aims to pay for natural gas—whether from Russia or alternative suppliers—were raised as part of a broader call for greater transparency. While not deemed ultra-urgent, these questions are clearly central to ensuring a transparent and predictable market. The potential upper limit on Russian gas was seen as a signal to influence gas exports from Russia.
Ribera underscored the importance of acting at full speed on liquidity measures that would allow energy operators in Europe to continue purchasing with adequate financial guarantees, without being overwhelmed by the complexity created by soaring prices. She welcomed Brussels’ proposal to reduce consumption by around 5 percent during peak periods as a practical tool. However, the actual effect of such a measure depends on the specific demand structure of each member state. Some states have limited experience with demand-side reductions during peak hours, while others have made substantial progress. The margin for effectiveness, she noted, will hinge on tailoring approaches to national contexts and market conditions.