FT: EU thinks about capping electricity prices

The European Commission may propose to impose a ceiling on the price of electricity supplied by non-gas producers. It is assumed that the limit will be set at 200 euros per MWh, about this reported the Financial Times, citing the draft proposal.

According to the document, the European Commission intends to recommend to the EU countries to introduce a limit on electricity prices. The restriction will affect only producers independent of gas – wind, nuclear and coal-fired power plants. However, the EU expects that the cost of such electricity will be high enough not to discourage investment in such electricity generation in the future.

It is clarified that at present the spot price per MWh of electricity exceeds 450 euros in Germany. Such high spot prices are due to the fact that the cost of electricity is pegged to the gas market, prices on which have recently increased significantly against the backdrop of news about the cessation of gas supplies via Nord Stream and the early filling of gas storage facilities in Europe. According to the publication, now gas prices in Europe are about 10 times higher than the average values ​​for 10 years.

In addition, the document provides for a mandatory reduction in electricity consumption by 5% during peak hours. Among the ways in which industrial users can be forced to reduce their electricity consumption is to reduce the cost of future hours, as well as compensation.

EU diplomats are expected to discuss the plan today ahead of an emergency meeting of energy ministers on Friday.

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