Deal on European gas price cap, but what does it mean for your portfolio and when will we feel that? | Instagram VTM NEWS

For our country, Energy Minister Tinne Van der Straeten (Groen) attended an emergency meeting on the energy crisis. “The Energy Council has sent a clear signal to the European Commission. A price cap on all gas imports, not just Russian gas. Rapid implementation is needed before the winter season starts. This could mean urgent financial aid to European households and companies,” Van der Straeten said on Twitter after the emergency meeting in Brussels.

A maximum price is charged to the sellers of natural gas, companies outside Europe. Almost all European countries have to agree to this. They will then have to offer the same price for gas. That amount will have to be an average European price. Our country alone does not have the power to introduce a cap.

Prime Minister Alexander De Croo said earlier that a price ceiling is needed on all pipelines, not just the Russian one. “If not, we will continue to carry massive taxpayers’ money to gas-producing countries,” he clarified.

The price of gas has a major influence on the electricity prices, because the price is determined by the last supplier in the market that is needed to meet the demand, and that is often the very expensive gas. Renewable energy or nuclear energy producers are producing at lower costs and are making huge profits these days.

European energy ministers want to skim off some of the excess profits of these producers to provide support to consumers and companies moaning under energy bills. To offer them solace, the oil and gas companies are also expected to make a “solidarity contribution”.

A European price ceiling could mean a saving of EUR 770 per year for an average family. The cabinet of Van der Straeten already calculated this. The cabinet bases this calculation on Spain, where a price ceiling already applies.

There is no guarantee that such a ceiling would work effectively. If non-European countries start to offer more than the European price ceiling, there is a chance that the gas will go to those countries. Commission President Ursula Von der Leyen warned that the price that Europe is willing to pay must not fall below the Asian price, otherwise the LNG tankers threaten to sail to other places.

A majority of Member States support the general price cap, which means that the Commission has to work to put forward a concrete proposal. That proposal should be finalized by next week. European energy ministers are expected to meet again before the end of the month to discuss these proposals.

Minister Van der Straeten acknowledges that the introduction of such a ceiling is not an easy task. “It is difficult, it is complex and there are risks, but these are unprecedented times. This is no longer a technical issue for me. Technicians have to work out the solution that politicians want,” she says.

Countries such as Hungary, Austria, Italy, the Czech Republic and Slovakia still get a lot of gas from Russia and fear that the tap from Russia will close if Europe introduces such a price ceiling (something Putin also warned about, ed.). Germany did not want to know about this for a long time, but seems to be taking a turn lately. If only because they no longer get any Russian gas themselves,” Professor Hendrik Vos (UGent) explained to our editorial team.

Also review. Zuhal Demir for consultation: “Winter is coming”