E15: Michal Hrubý: Capping of gas prices in the EU could trigger a rationing system

The European Political Community Summit brought together statesmen from all over Europe. One of the key issues discussed is energy and the search for a common solution to the energy crisis. The proposals presented are aimed at influencing gas and electricity prices, but the scope and method of intervention vary from plan to plan, as our researcher Michal Hrubý points out in an article for E15. He also discusses the implications of the solutions, such as the possibility of an energy rationing system.

"Approval of the proposal to cap gas prices across the EU would mean the creation of a completely new way of trading and redistributing gas between member states - there would be no real market conditions for commercial transactions across the EU and a rationing system could be created. So other solutions will probably be preferred." says Michal Hrubý. 

"Negotiations on the price of imported gas must be conducted collectively at the level of the EU and partner countries. Prices are to be reduced through new and long-term contracts and partnerships." 

Read the full article here.

Michal Hrubý
Research Fellow

Expertise: EU green economics, heavy industry, transport