The European Commission is preparing drastic action to counter the energy crisis in the form of a price cap on European wholesale gas prices to deescalate electricity prices around Europe.
According to energypress sources, details of the plan will have been finalized by around September 20 so that it can then be discussed by the EU’s energy ministers and heads of state.
Despite these necessary steps, the finalized plan could well be ready for implementation by the end of September as Brussels is seeking a swift procedure.
Highlighting the cruciality of the gas-cap plan for Brussels, European Commission president Ursula von der Leyen is being regularly updated on its progress by the European Commission’s Directorate-General for Energy.
The Directorate-General for Energy is believed to be examining two alternative plans, sources informed.
The first alternative, seen as the more probable option, would entail gas import disruptions for gas offered at prices over the cap to be implemented. Brussels authorities believe Europe’s considerable share of global fuel demand could help subdue gas prices if orders are stopped collectively. The second alternative would involve subsidy support for gas imports.