European Gas Price Cap Plan Floated as EU Prepares Its Version
- Majority of EU governments are pushing for limit on gas prices
- European Commission pledged to present details before Nov. 24
A worker adjusts a valve wheel at a gas storage facility in Batajnica, Serbia.
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
As some European Union nations demand a price cap on natural gas, one member is offering a possible solution: a temporary mechanism to curb excessive price swings in all the bloc’s trading venues.
Slovenia suggested that the EU could create a tool that could involve a maximum price and two trading ranges, according to diplomats. The daily mechanism would keep gas prices moving in a certain corridor around the previous day closing price. The longer-term mechanism, the range would be set around the average closing price of the preceding 30 trading days and applied on a rolling basis.