Gas price cap hopes fading, new EU benchmark in place of TTF likely

Prospects for an adjustable gas price cap in the EU appear to have faded following Berlin’s  rejection of the plan, despite latest efforts made yesterday by several EU energy ministers, including Greece’s minister. The group, representing the EU’s most supportive members of a gas price cap, forwarded a related request to European Commission president Ursula von der Leyen.

On the contrary, a European Commission proposal for the introduction of a new benchmark concerning the price of natural gas in the EU, to replace the current TTF, appears to be gaining wide acceptance among EU member states. Officials are already believed to be working on this plan.

Despite yesterday’s setback for the gas price cap, Greek Prime Minister Kyriakos Mitsotakis and fellow supporters of the plan intend to once again table a request at next week’s EU summit.

Yesterday’s rejection of the plan by Germany was attributed to disagreement within the German government, and objections by the Netherlands.

According to sources, German Chancellor Olaf Scholz ultimately deemed that a gas price cap could lead to side effects in energy markets after signs, yesterday, that Germany could accept the plan.