London Daily

Focus on the big picture.
Friday, Jul 31, 2026

EU should be 'very careful' about capping gas prices, warns German minister

EU should be 'very careful' about capping gas prices, warns German minister

The European Union should be "very careful" about imposing a price cap on all gas imports entering the bloc, Anna Lührmann, Germany's minister of state for Europe, has warned.
The idea of an EU-wide gas cap has gained traction in recent weeks after prices broke new records in August and pushed electricity bills to unsustainable highs. Italy, Belgium, Greece, Sweden and Poland are among those backing the initiative, which is still in its early stages.

But Germany, the EU's largest economy and gas consumer, remains opposed, believing the measure could scare suppliers away and endanger the bloc's security of supply.

"The issue with the price cap is that: if you introduce a price cap, as the EU unilaterally, and all the other consumers around the world don't do it, then the gas will go to other consumers and thus we might have a shortage in gas supplies," Lührmann told Euronews in an interview.

"So, I think we should be very careful with these kinds of price caps and do everything we can to diversify our supply structure. That will also help to address the price issues."

Lührmann said that, instead of imposing a horizontal price cap on gas imports, the EU should engage directly with its main gas suppliers and negotiate lower prices.

"It would be important to discuss with individual gas suppliers, such as Norway, ways to reduce the price because they have a big interest in the European Union and the European market," the minister said.

"But overall, there's no alternative to actually finding the ways of how we can use energy more efficiently and how we can build up a sustainable energy system [based] mainly on renewable sources."

Norway, which this year replaced Russia as the EU's leading gas supplier, has said it is "skeptical" about a price cap but open to finding solutions. The country's trade surplus reached an all-time high of almost €20 billion in August, mostly due to soaring gas prices.

The European Commission is studying the measure's potential risks, including its impact on the liquefied natural gas (LNG) market, and has not yet tabled a formal proposal for ministers to discuss.

For the time being, the EU's emergency package will focus on three elements: electricity savings during peak hours, a cap on the excess revenues made by non-gas power plants (such as wind, solar and nuclear) and a windfall tax on the surplus profits reaped by fossil fuel companies.

The overall goal is to curb demand while raising extra money for governments.

"We can use those surpluses and give them back to consumers, to citizens, particularly those in need, so that we reduce the prices for them," Lührmann said.

The minister, who belongs to the Greens, said the new EU measures are a "very good" starting point but should be complemented by an extra effort at the national level to boost renewables.

"I'm quite convinced that if we follow them through," she said, "we [can] manage to get through this winter and also create conditions to make our economies sustainable without Russian energy supplies."

EU energy ministers are set to meet on Sept. 30 to debate and green light the emergency measures.
Newsletter

Related Articles

0:00
0:00
Close
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Prince Harry Faces Significant Legal Costs After Insurance Shortfall
FirstGroup Sells Rail Software Business to Tracsis for £48 Million
Victoria and Albert Museum Staff Vote for Strike Action
Norwegian Teenager Convicted Over Contract Killing Plot in Britain
Royal Mail Raises Bulk Mailing Prices by 30%
Immigration Remains Britain's Top Public Concern, Ipsos Survey Finds
Prime Minister Says Social Care Reform Must Precede Assisted Dying Legislation
×