Europe’s Energy Price Caps Risk Derailing Efforts to Curb Demand
- Rystad says price limits can stoke ‘artificially high’ usage
- Subsidies may slow demand destruction, Morgan Stanley says
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Europe’s efforts to reduce energy demand this winter risk getting derailed by government measures to ease the economic impact of surging fuel and power costs.
That’s according to analysts from Morgan Stanley to Rystad Energy AS and Citigroup Inc. who argue that price caps and subsidies are eroding the urgency to curb consumption at a time when Europe still faces a struggle to keep homes warm and the lights on in the coming months.