EU at odds over fuel worth cap as 12 international locations criticize newest proposalDecember 10, 2022

A dozen international locations, together with Belgium, Italy, Poland and Slovenia have made a push to “considerably” decrease a deliberate European Union cap on fuel costs, because the bloc struggles to strike a deal on the measure.

Fuel costs in Europe have soared this yr after Russia slashed fuel deliveries following its invasion of Ukraine, pushing up gasoline prices and stoking inflation.

EU international locations held emergency negotiations on Saturday as they try and line up a deal to cap costs at a Dec. 13 assembly of their power ministers, however states stay cut up over the plan.

An official from one EU member state stated international locations have been “narrowing down the variations” of their positions, however others stated little progress had been made on Saturday. Diplomats will maintain extra negotiations on Monday.

Twelve of the EU’s 27 member states have circulated a paper demanding that the value cap be “considerably” decrease than the newest compromise being negotiated by international locations.

“The textual content has not gone far sufficient in direction of what we may take into account a passable compromise,” they stated.

The paper, seen by Reuters, was put ahead by Belgium, Bulgaria, Croatia, Greece, Italy, Latvia, Lithuania, Malta, Poland, Romania, Slovenia and Slovakia.

EU international locations have wrangled for months over whether or not to cap fuel costs, however have to this point didn’t bridge the hole between their divergent views.

Some diplomats are skeptical a deal might be reached subsequent week, and level out that international locations sad with the newest proposal have sufficient help to dam it from being accredited.

Whereas pro-cap international locations say the measure would protect their economies from excessive power prices, Germany – Europe’s greatest economic system and fuel market – and the Netherlands have opposed it.

They warn it may disrupt the conventional functioning of power markets, and deter fuel producers from sending much-needed gasoline to Europe.

The most recent draft proposal being thought-about by international locations would see the cap triggered if costs exceeded 220 euros ($231.66) per megawatt hour for 5 days on the front-month contract within the Dutch Title Switch Facility (TTF) fuel hub, and have been additionally 35 euros larger than a reference worth for liquefied pure fuel (LNG) primarily based on current LNG worth assessments.

That proposed cap is under the 275 eur/MWh restrict proposed by the European Fee, however the 12 international locations stated it was nonetheless not low sufficient.