The newly tabled gas price cap proposal is flawed and risks damaging Europe’s energy security, Dutch Energy Minister Rob Jetten said at an emergency meeting of EU ministers on Thursday.
EU energy ministers met on Thursday to discuss a range of new measures to tackle the energy crisis, including a price cap on gas, tabled by the European Commission on Tuesday.
But just two days after it was announced, the cap – also called the market correction mechanism – has been met with widespread criticism from countries both for and against the idea.
Jetten believes the proposal is “flawed,” telling journalists ahead of Thursday’s meeting that there is “a lot of risk for damaging the energy security of supply and also for the stability of the financial markets”.
The Netherlands belongs to a group of countries that are sceptical about imposing a price cap, with concerns including the measure worsening the energy crisis by disincentivising gas shipments to the EU and removing the high bills that drive demand reduction.
“I’m just looking at all the experts that are warning us that this market mechanism that is proposed today can be harmful to the security of supply in Europe,” Jetten said.
When asked what it would take for him to say yes to the mechanism, Jetten told reporters the Commission would have “more homework” to do.
Many EU countries voiced concerns about the price cap tabled by the European Commission at their meeting, with those in the opposing camp to the Netherlands argue that the cap needs to be lower for it to be effective.
EU capitals now have until Friday to submit their views on the proposal. It will then be discussed between countries to find an agreement at another emergency meeting of EU energy ministers on 13 December.
(Kira Taylor; Sofia Stuart Leeson | EURACTIV.com)
Source: euractiv.com
