The EU’s plans to cap gas prices to avoid a repeat of the surge in energy costs seen over the summer have come under fire from critics who say it is unlikely to ever be used.
The European Commission on Tuesday proposed a cap on month-ahead wholesale gas prices at €275 per megawatt hour. However, the cap would only apply if prices were above that level for two weeks and were more than €58 per MWh higher than an average price for liquefied natural gas for 10 days.
“This is not a silver bullet,” EU energy commissioner Kadri Simson said as she announced the policy on Tuesday. “But [it] provides a powerful tool that we can use when we need it.”
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