Earlier this week, the European Commission proposed a 275 euros ($286) cap per megawatt hour starting January 1 for the front-month price at the Dutch gas exchange TTF, the EU's benchmark. The cap will be triggered only if its difference from the global LNG price average exceeds 58 euros for 10 consecutive trading days, according to the plan.
"We will also discuss the mechanism of market correction... There is a number of disagreements among the member-states. To sum up, we can say that everyone is unhappy about the Commission's proposal to a different extent, this is what we will discuss today," Giegold said ahead of the meeting of the Energy Council in Brussels.
The German official noted that it was important to address the causes of rising energy prices and avoid additional threats to the energy market.
Dutch Energy Minister Rob Jetten, too, said he had reservations about the Commission's plan.
"The proposal that is on the table now regarding the market mechanism is flawed. There is a lot of risk for damaging security of supply and also for the stability of the financial market, so I am also very critical on this proposal," Jetten stated.
Earlier in the day, Italian Energy Minister Gilberto Pichetto Fratin said in a doorstep comment before the energy council that at least 15 EU states have agreed to reject the Commission's price cap plan.
According to Hungarian Foreign Minister Peter Szijjarto, EU energy ministers did not make any decision regarding the proposal on Thursday, with their next meeting on the matter scheduled to take place on December 13.
Since 2021, energy prices in EU countries have been surging as part of a global trend. After the beginning of Russia's military operation in Ukraine in February 2022 and the adoption of several packages of sanctions against Moscow by the EU, the increase in energy prices accelerated. Energy security rose to the top of both global and national agenda, forcing European governments to resort to contingency measures.