The European Commission will give details on the gas price cap this month so that Russia cannot charge a premium.
EU Caps Natural Gas Prices
In an interview with the newspaper Repubblica on Saturday, Italian Minister for Ecological Transition Roberto Cingolani stated that the agency might complete its proposition this month to start imposing a general price limit on all gas imports, reported RT.
This specific gas price limit suggestion has been made and has received support from 15 member states, such as Germany.
A proposal is anticipated to be completed by September, and he continued that more work is needed to get more nations to support it.
Gas prices are already rising fast all over the bloc from a few months earlier as a direct consequence of sanctions imposed on Russia over the conflict in Ukraine as well as a reduction in the supply from Moscow, noted the Good Word News.
Before this sudden decline, EU leaders had announced a legitimate plan to cut gas consumption by 15% from August 1 thru March 31, 2023.
Contributing nations are free to choose whether they wish to decrease their gas use by 15% between August 1 and March 31, 2023, as they adhere to definite recommendations.
Even before the upcoming winter season, the European Commission within the bloc is also establishing a plan to deal with the energy shortage, like the gas price cap.
The steps recommended by the European Commission, as shown by Politico relatively early this week, entail price caps on Russian gas imports, a drop in energy expenditure, help for power companies, and the imposition of a tax on fossil fuel firms to generate big profits.
According to reports, the package will be authorized on September 14.
In the Financial Times, a minimum price on imports from all providers, not just Russia, is an option that about ten EU states want. Based on reports, the suggestion by Commission President Ursula von der Leyen to constrain prices for only Russian gas has been spurned by Italy, Poland, and Greece.
The Netherlands, Hungary, and Austria resist the levying of a price ceiling.
In the circumstance of a price limit, Brussels is worried that Moscow may very well halt gas shipments. Russian President Vladimir Putin earlier threatened to halt oil and gas consignments to nations that make decisions on the expenditure of contract agreements.
EU Verifies Gas Proposal by Brussels
Earlier this week, the European Council gave its final approval to a plan that would see EU nations cut their gas consumption by 15% over the ensuing months.
Based on a press release published on the European Council website, the assessment aims to improve the energy supplies of the bloc by stashing gas for the winter season if Russian supply disruptions occur.
According to the update, member countries agreed to decrease their gas consumption by 15% from their normal mean over the previous five years, starting on August 1, 2022, and March 31, 2023.
The European Commission and member states remarked to the Italian Minister about the gas price cap to lessen natural gas costs.
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