EU explores gas price caps, electricity market reform, and measures to cut demand
The European Commission is assessing potential options to cap gas prices, reform the electricity market, and strengthen resilience across the European Union. These steps come alongside existing strategies aimed at reducing gas consumption to help lower electricity bills for households and businesses in the wake of rising energy costs.
In a Thursday briefing, Mechthild Wörsdörfer, Deputy Director General of the Commission’s DG Energy, confirmed the ongoing internal review. During remarks to the European Parliament, President Ursula von der Leyen signalled openness to an emergency response to the electricity market and a reassessment of EU measures. The aim is to counter what officials have termed energy market coercion or “Russian energy pressure.”
Wörsdörfer told Members of the European Parliament that Brussels is evaluating how to apply a gas price ceiling, considering existing measures such as the Iberian mechanism already in place for Spain and Portugal. The discussions focus on the feasibility of different cap designs and how they could operate within the current EU framework.
The official noted: caps on gas prices are under review, with technical seminars planned to explore various options in detail. Member State perspectives will be sought to gauge feasibility and political acceptability before any final path is chosen. These conversations reflect the broader objective of market intervention to ensure price signals do not destabilize the energy system.
Regarding high electricity costs, Wörsdörfer confirmed that Brussels is advancing “emergency measures” to stabilise short-term conditions and curb demand. The Commission is weighing European-wide short-term responses while keeping an eye on longer-term reforms that would decouple the cost of gas from prices of other energy sources. The public stance remains that reform is needed, but it cannot be hurried. There is an emphasis on exploring multiple options and maintaining flexibility in response to a difficult situation across Europe.
Officials underscored the need for careful planning. While reforms are essential, they acknowledge that a rapid, overnight overhaul is unlikely. The emphasis is on steady progress that preserves energy security and affordability for citizens and businesses alike.
In summarising the EU’s current approach, the Commission noted that the agreements already signed at the EU level have been implemented at a record pace. The energy strategy includes plans to cut gas demand by a measurable margin, enabling coordinated savings and limiting the impact on households and enterprises. This package is designed to work in tandem with existing measures rather than replacing them.
The voluntary plans adopted by the Twenty-Seven aim to reduce demand by about 15 percent. Spain and Portugal, due to their status as energy islands, have an indicative target closer to 7 percent. Early reports on these measures are expected in October, with a mechanism for warning governments if plans should become mandatory should the situation deteriorate. The overall objective is a balanced approach that strengthens EU energy resilience without compromising economic activity or competitiveness across the bloc.
Europe remains committed to a prudent, transparent process. Officials stress that while the path to reform is clear in its direction, the exact steps will be shaped by ongoing technical discussions and each Member State’s input. The goal is to craft a durable framework that can withstand volatility in global energy markets while protecting consumers and businesses from excessive price spikes.