The EU Energy Ministers to discuss a gas price ceiling plan: what to expect

Alexey Belogoryev, Deputy Principal Director on Energy Studies of the Institute for Energy and Finance, commented to Forbes on the likely changes that could be made to the EU package of measures aimed at reducing wholesale gas prices.

The European Union will be able to introduce some kind of regulation of the gas market, Aleksey Belogoryev says.

“I believe the general direction will be to soften the EC proposals of 18 October,” he says. — The EC is trying to strengthen its rights to intervene and control the gas market, and national governments are trying to resist. They are not against joint actions, the question is the obligation of these efforts and who will control them. No one wants to further strengthen such supranational control.”

The expert predicts that editing the EC package of measures can go in two directions. The first is the softening of the requirements for mandatory joint actions, including the pumping of gas into underground storage facilities, and the softening of the wording on energy solidarity to please the countries of Eastern Europe, mainly Hungary and Poland.

“The second, and most intriguing, part of the possible changes is the notorious dynamic limit,” Belogoriev says, — It is clear that some mechanism to reduce prices should be proposed. This is expected from European politicians and the market, and the broad masses of voters. But the dynamic limit requires serious economic assessments in terms of the consequences of its introduction, and I am not sure that the EC has them now.”