Belgium has favored introducing price caps at the European Union’s gas and electricity hubs, as well as suspending negotiations in the event of “irrational market behaviour”, according to a memo cited by Reuters.
Within the year, Eurostat had reported that Belgium had the highest energy inflation in the EU, with the country’s government working out tax and duty interventions to ease pressure on consumers while also calling for reforms to the European energy market.
“A ceiling needs to be imposed on the trading levels of natural gas prices at European hubs in order to limit irrational market behaviour,” the Belgian government said in its note.
Based on the LNG terminals and natural gas pipelines connecting Europe and the world, wholesale prices should not be significantly higher in Europe than at the US Henry Hub or Asia’s JKM.
“If price caps are imposed on the natural gas market, price caps on the electricity market must also be revised,” added the memo, which outlines the Belgian government’s stance ahead of talks between EU energy ministers. .
Belgium is also calling for the suspension of wholesale trading if necessary and a review of pricing, which currently translates high gas prices into more expensive electricity, even for that produced from nuclear or renewable sources.
Source: Capital
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