Gas markets are out of control: EU

9/13/2022 8:47:21 PM
 Czech Republic's Industry and Trade Minister Jozef Sikela, right, arrives for a meeting of EU energy ministers at the European Council building in Brussels, Friday, Sept. 9, 2022.
 photo: AP
Europe is close to capping the revenues of low-cost energy companies.

The European Union announced that the gas markets are experiencing tension amid expectations that prices will spiral out of control.

It seems that the European Commission is moving away from deciding to set a ceiling for gas prices, citing the need for more discussion among the European Union member states, which are already divided over the initiative.

But what appears to be close to being implemented is capping the revenues of low-cost energy companies and introducing mandatory consumption cuts.

Last week, European Union energy ministers asked the European Commission to propose broad ceilings for gas prices.
The European Union plans to replace two-thirds of Russia's gas imports by the end of the year, although analysts warn of a failure to meet demand.

Since the war in Ukraine, Russia has gradually reduced its sale of energy to European markets, and this has caused severe shortages in the EU.

Experts warn of a grave energy crisis in the coming winter, and the Union seems to be divided to reach any productive conclusion any time soon. 

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