It is time to cap the price of Russian gas, said the head of the European Commission

It is time to cap the price of Russian gas, said the head of the European Commission
It is time to cap the price of Russian gas, said the head of the European Commission

The European Union should cap the price of gas transported by pipeline from Russia to mitigate the effects of market manipulation by Russian President Vladimir Putin. President of the European Commission (EC) Ursula von der Leyen announced this on Friday during her trip to Germany. At the same time, the head of the EU executive called for energy savings, she should present a concrete plan in mid-September.

In the spring, EU states tasked the commission with preparing an analysis of possible price caps due to the unprecedented rise in energy prices related to the Russian invasion of Ukraine.

“I am firmly convinced that it is time to cap the price of gas from Russian gas pipelines to Europe,” said the German politician after today’s meeting with the leadership of the German Christian Democrats (CDU). According to her, in addition to savings, investments in renewable sources are other ways to deal with the rise in gas and electricity prices.

The price of gas for the European market for delivery in October hovered around 213 euros (5,215 CZK) per megawatt hour (MWh) shortly after midday at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands. A year ago it was about 29 euros and two years ago it was about 15 euros/MWh. It began to increase more noticeably last autumn, reaching a maximum of around 345 euros/MWh shortly after the February invasion of Ukraine by Russian troops, but fell below 200 euros per MWh on the same day. Prices in TTF are decisive for the European market.

The possibility of introducing maximum prices for Russian gas will be discussed in a week by the energy ministers of the EU countries, whose extraordinary meeting was called by the Czech Presidency of the Council of the EU. In response to the rapid rise in prices, more and more countries are talking about capping in recent days. Von der Leyen should present a more detailed procedure on September 14, when she delivers her annual State of the EU message.

The article is in Czech

Tags: time cap price Russian gas European Commission

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