EU Energy Ministers Seek to Contain Gas Prices

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

EU energy ministers meeting in Prague today are under pressure to find common ground over what to do next to protect citizens and businesses from soaring costs this winter. The aim is to show enough agreement to allow the Commission to present a set of new proposals before EU leaders gather in Brussels next week. The easiest way forward may be to expand the “Iberian model” (capping gas prices used in electricity generation) to the rest of the bloc. But there is lingering opposition from the likes of Germany who see it as spurring demand for energy when the EU should be trying to curb its thirst. Progress may also be made over joint gas purchases before storage refilling season next year, but a broader price cap on gas imports is further off. According to a document we’ve seen, Germany and the Netherlands will put forward a 10-point plan that focuses on the joint purchase of gas to stop individual countries from outbidding each other on the markets. A price cap on Russian gas imports could be considered, if it is acceptable to countries that would be most affected. Some sort of consensus will have to be found if there is any hope of getting those policies in place before the cold sets in.

— John Ainger and Natalia Drozdiak