Belgium, (Brussels Morning Newspaper) European Commissioner for Energy Kadri Simson announced that the EC will propose a gas price cap in the winter if EU member states approve the move.
She noted that the cap could help to limit price spikes in the heating season and added that bloc members do not see eye to eye on the proposal, according to Reuters reporting on Wednesday.
Last week, the Commission pointed out that it can propose a price cap for the EU Parliament and Council to discuss if bloc members are in favour.
While EU member states could call on the EC to propose the measure next month, they have not reached an agreement on the plan after weeks of discussion.
Germany heads the opposition to the proposed price cap, warning that the move would affect companies’ ability to buy enough gas in the winter when demand rises.
On the other hand, a group of bloc members including Belgium, Italy, Poland and 12 of their counterparts is calling for a bloc-wide cap, stressing that price spikes are pushing up inflation.
Prices to drop slightly in 2023
Also on Wednesday, the World Bank (WB) predicted that energy prices will drop roughly 11% next year, following this year’s growth of approximately 60%.
According to the WB, Russian oil exports could drop up to 2 billion barrels per day in the coming months due to EU sanctions and restrictions, some of which will come into effect on 5 December.
It described G7’s proposed oil price cap as “untested” and pointed out that the move would require the support of developing countries and large emerging markets to be effective.
The WB warned that disruptions to the global economy drove up food prices in South Asia more than 20% in the first nine months of this year, with inflation averaging between 12% and 15% in Central Asia, Eastern Europe, North and Sub-Saharan Africa, the Middle East and Latin America.
The bank noted that growth of energy prices is slowing down and predicted that they will be about 75% higher this year compared to the five-year average. It warned that coal production is increasing significantly, which jeopardises the green push.
