EU energy ministers disagree over Russian gas price cap

European energy ministers have disagreed over a price cap on Russian natural gas prices. 

The energy ministers’ emergency meeting was held on Friday in Brussels to make a decision on upholding a proposed price cap on Russian gas. 

Ursula von der Leyen, European Commission president, had made the proposal earlier in the week, following Vladimir Putin’s threat to cut gas supply. 

But the energy ministers asked the EU commission to redraft plans to control the soaring energy prices. 

Robert Habeck, German economy and energy minister, after the meeting, told reporters that the commission has “a clear mandate to work out a viable proposal, or even better, viable proposals”.

Hans Vijlbrief, state secretary for the extractive industries, Netherlands, said: “I would not say there was broad support for a broad (gas price) cap”. 

On its part, the European Commission warned that capping liquefied natural gas (LNG) prices in Europe could deprive the continent of much-needed fuel.

“We have to take care that we will not jeopardise our security of supply situation,” Kadri Simson, EU energy commissioner, said. 

EU COUNTRIES BACK ALTERNATIVES 

The ministers asked the European Commission to propose a broader gas price.

The EU countries supported the commission’s proposal to claw back some power producers’ revenues and use the money to salvage consumer bills.

Consequently, the ministers supported windfall levies on some energy companies, including nuclear and coal-powered plants. 

“Taking some of those excess profits and recycling them back into the households makes sense,” Eamon Ryan, Irish environment minister, said.

They also supported the EU executive’s proposal to offer emergency funds to  power firms to keep operating during the difficult economic conditions.