Energy ministers from European Union countries will discuss options on how they could curb a rally in energy prices, including a cap on natural gas prices, Reuters reported, citing documents.
The EU ministers will meet on September 9 to discuss emergency measures to deal with rising gas and electricity prices after Russia cut supplies.
A document seen by Reuters says ministers will consider options including a price cap on imported natural gas, a price cap on natural gas used to generate electricity or the temporary shutdown of power stations. natural gas from the EU system to determine electricity prices.
Ministers will also consider offering emergency “support via pan-European credit lines” for energy market participants who now have to cover large margin calls, according to a document drawn up by the Czech Republic, which exercises the rotating presidency of the EU
Already Finland and Sweden announced on Sunday that they plan to offer billions in liquidity guarantees to power companies.
“Margin Requirements for Futures Contracts [futures] have increased in line with increased daily price fluctuations. This makes it almost impossible for a growing number of firms to keep their hedging positions open, causing them to withdraw from futures markets,” the EU document said.
Source: News Beast
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