- The European Commission sent a non-paper to EU countries on Wednesday (28 September) to float ideas on mitigating the impact of soaring gas prices in Europe while warning that major gas market interventions come with risks.
- If this measure were to work, it would require creating a body at the EU level to replace the workings of the market and ensure gas is sent to places with scarce supply.
- A price cap would also remove the financial incentive for consumers to reduce consumption, so there would need to be a “significantly more drastic” demand reduction framework, including curtailment, to address the increase in demand due to a lower price.
LEAK: Brussels floats cautious options for capping gas prices
