Spain along with fourteen other nations pressed the European Commission in Brussels to cap the wholesale price of natural gas as the Extraordinary Council of Energy Ministers prepares to meet this Friday. In a letter to Energy Commissioner Kadri Simson, the group highlights the urgent concern over gas prices, stressing that a price cap could help curb inflation, anchor expectations, and provide a safety net during potential supply disruptions while limiting windfall profits in the sector, a point Politico circulated and confirmed via El Periódico de Catalunya.
On Friday, the energy ministers will vote on the European Commission’s revised emergency response plan. The package includes measures to limit unexpected profits, potentially affecting technologies that are not always the primary producers of supply, and contemplates a solidarity contribution from oil and gas companies, along with demand-reduction steps during peak consumption hours. Twenty-seven governments are involved in shaping this text, which has been in development for weeks to reach a broad agreement.
The Czech presidency outlined a new offer on Monday to be discussed at the ambassadorial level on Wednesday, aiming to provide greater flexibility in implementing measures at the national level. The plan also addresses an oil and gas tax. Member States would be exempt from applying the tax if they implement equivalent national measures that cover the same activities, generate additional revenue with a clear purpose, and ensure the funds are used in a manner similar to the European ‘solidarity contribution,’ among other conditions.
Spain expands gas delivery capacity to Europe via France by 18%
Belgium, Greece, Italy, along with Spain, Portugal, France, Bulgaria, Poland, Romania, Lithuania, Latvia, Croatia, Malta, Slovakia, and Slovenia have urged Brussels to advance a formal proposal that would set a gas price ceiling on Friday, with a legislative proposal to follow as soon as possible. The notion of capping gas prices is not new. The European Commission previously considered placing a cap on gas prices for pipeline deliveries from Russia, but the idea faced resistance in several capitals and was not included in the current package. A draft regulation is expected to be presented for ministers’ vote on Friday.
In this framework, the coalition argues that the ceiling should apply to all wholesale natural gas transactions and not be limited to imports from specific regions. The aim is to ensure security of supply and uninterrupted gas flow across Europe. The proposal also points to strengthening market oversight and exploring alternate pricing criteria for European gas markets as potential enhancements to the package.
Looking ahead, the European Commission must decide how to handle broader electricity market reform and the reform of CO2 rights markets in the coming months, two areas it has pledged to address but for which consensus remains elusive. Officials also consider adjusting financial guarantee requirements to address liquidity pressures faced by energy companies.