EU Plans New Measures to Tame Energy Markets, Ease Gas Prices

The European Union’s executive arm plans to outline further actions to contain an unprecedented energy crunch by reducing markets swings, boosting liquidity and lowering natural gas costs, Bloomberg News reported. The European Commission aims to publish Sept. 28 a document detailing future steps to ease volatility and increase trading volume in energy markets as surging prices have made for ballooning margin calls, in addition to measures that the bloc could take to reduce fuel prices. But while some member states are calling for capping the price of gas, the Commission isn’t planning to propose any regulation next week and may instead elaborate on a range of ways to address the issue, the people said. With consumers in the EU’s 27 member states reeling from record energy bills after Russia cut natural gas supplies, governments are pushing the Commission for region-wide solutions to mitigate the crisis. They would build on a previously proposed intervention package that includes a windfall levy, price cap on lower-cost electricity and a mandatory power demand reduction target. The planned document -- known in the EU jargon as a communication -- would give governments assurances about further measures to come as they aim for a deal on the initial emergency intervention plan at a ministerial meeting on Sept. 30. Effectively an action plan, it is usually followed by detailed regulatory proposals that need approval from member states. Read more.