EU’s von der Leyen pitches fuel value caps to EU leaders By Reuters

By Philip Blenkinsop and Kate Abnett

BRUSSELS (Reuters) -European Fee President Ursula von der Leyen will counsel to EU leaders assembly this week how the EU might cap fuel costs in a bid to include hovering vitality prices.

EU governments have debated a fuel value cap for weeks, with out reaching settlement. Whereas a majority of EU members help some type of cap to deal with hovering inflation, Germany, Denmark and the Netherlands are opposed, citing issues over safety of provide.

The EU govt’s chief laid out her proposals in a letter on Wednesday to EU nation leaders, who will talk about whether or not or the way to cap fuel costs at a gathering in Prague on Friday.

“We must always take into account a value limitation in relation to the TTF in a method that continues to safe the availability of fuel to Europe and to all Member States,” her letter mentioned, referring to the Dutch Title Switch Facility (TTF) fuel value.

Such a cap can be a brief repair whereas the EU works on a brand new fuel value benchmark, von der Leyen mentioned.

The Fee has mentioned a brand new index is required for the reason that principal TTF benchmark is guided by pipeline provide and not consultant of a market that features extra liquefied (LNG).

Europe has hiked LNG imports after Moscow slashed fuel deliveries to Europe since its invasion of Ukraine. Russia has blamed the availability cuts on western sanctions imposed over the invasion.

Von der Leyen mentioned the EU also needs to take into account a value cap on fuel used to generate electrical energy – however that any cap should be matched with more durable necessities to chop fuel demand, to make sure fuel consumption doesn’t rise at a time when the gasoline is scarce.

Talking within the European Parliament on Wednesday morning, von der Leyen mentioned EU international locations also needs to begin collectively shopping for fuel, to make sure particular person members didn’t outbid one another for fuel on world markets and drive costs up.

She additionally mentioned the EU ought to attempt to negotiate a value “hall” on provides from trusted suppliers.

Von der Leyen mentioned the EU ought to look into further funding sources to make sure all 27 member international locations could make the investments wanted to climate the vitality disaster.

The Fee has mentioned it’s in talks with Germany about its 200 billion euro ($198.8 billion) help bundle that critics say threatens to distort competitors within the bloc.

($1 = 1.0058 euros)