London Daily

Focus on the big picture.
Thursday, Nov 27, 2025

Gas price spat overshadows EU energy ministers’ effort to tackle price crisis

Gas price spat overshadows EU energy ministers’ effort to tackle price crisis

Member countries want to bring prices under control, but there are differences over the details.

All EU countries agree that the bloc has to take steps to cut soaring energy prices — but Friday’s emergency summit of energy ministers got bogged down in the details of how those policies would work.

According to the finalized meeting notes, obtained by POLITICO, ministers expressed support for several major policy proposals unveiled earlier this week by Commission President Ursula von der Leyen.

Those include: Taxing the windfall profits of producers not using expensive natural gas to generate power and a parallel profit clawback from fossil fuel companies also earning record cash; coordinating a reduction in bloc-wide power consumption; and providing “emergency liquidity instruments” to help energy firms meet sky-high collateral costs to trade on public exchanges.

“We managed to find a clear direction for the measures which need to be taken,” said Czech Minister of Industry and Trade Josef Síkela, who presided over the emergency Energy Council. “We now know exactly which road we need to take.”

But it's far from a done deal.

Ministers expressed general support for capping the price of natural gas in some form, but there was a spat over whether such a cap would apply to all imports or just those from Russia — as proposed this week by von der Leyen.

There was also disagreement over how to cut energy demand. The Commission wants that to be mandatory, but not all countries agree.

A request to relax state aid rules through the end of 2023 also figured prominently in ministers' asks — which would allow governments to rescue ailing firms faced with the fallout from the Russian war on Ukraine.

In addition to a global price cap, ministers also broached another idea not proposed earlier this week by von der Leyen.

They “called for sending a signal of confidence to the electricity market” by activating an existing emergency EU brake on automatic rises in wholesale power prices.

Those ideas are being sent to the Commission for further work.

“We will be proposing unprecedented measures next week for an unprecedented situation,” said EU Energy Commissioner Kadri Simson after the summit.


Gas price spat


The major tussle was how to push down the real-time price for natural gas — which has increased sevenfold compared to a year ago, and has led to a knock-on increase in power prices. The Commission only proposed capping Russian gas, but many countries want that to apply to all imports.

Italian Minister for the Ecological Transition Roberto Cingolani said 15 countries were in favor of a price cap on all natural gas, with just three insisting on a Russia-specific cap and eight other ministers either against, neutral, or worried about the economic impact.

“I think the gas price cap is from the market point of view the most difficult case,” Síkela said.

Berlin, Amsterdam and the Commission aren't keen on the idea.

If you put a price cap on gas, “then you have a big chance of having gas shortages. If you push the prices down, the effect is usually that the suppliers go somewhere else. And we want to hit Putin,” said Dutch State Secretary for the Extractive Industries Hans Vijlbrief.

The concern was echoed in Germany, where Chancellor Olaf Scholz said: “The solutions and the proposals are therefore not as obvious as they appear to some people."

Even singling out Russia is a step too far for some.

“We will not agree to this,” said Belgian Energy Minister Tinne Van der Straeten, saying a Russian-only cap had no “added value.”

A spokesperson for Hungary’s Foreign Minister Péter Szijjártó said: “A price cap on Russian gas is absurd.”

Simson said the Commission would work with countries worried about a vengeful Moscow cutting off their gas to find alternative supplies.

Despite those differences, French Energy Minister Agnès Pannier-Runacher was optimistic that there was "a common desire to move forward."

"It's a very strong message sent to the markets to avoid financial transactions on the gas market which appear to be gaming rather than corresponding to any physical reality of energy flows," she said.

The goal is to get concrete legislative proposals together by the time von der Leyen gives her annual State of the European Union speech next Wednesday.

“Nothing is decided yet,” said Simson. “So I do believe we will have a busy weekend and also first days of the next week before the final product and the Commission’s package will be really ready.”

Newsletter

Related Articles

0:00
0:00
Close
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
×