Italy Says Proposal to Cap Gas Prices Is Gaining Support in EU

Energy Minister Roberto Cingolani said Tuesday that an Italian proposal to cap natural gas prices in Europe is gaining traction across the region.

Germany has shown skepticism about putting a limit on the price of gas imports from Russia, despite Italy's recommendation.

Cingolani said that gas prices are not rising for physical reasons. Someone has decided that the price is going to go up.

A reduction in deliveries from Russia has helped drive prices higher in recent days, with shipments through the keyNord Stream line decreasing to about 40% of capacity. The benchmark European gas futures are more than four times their level of a year ago.

The supply crisis is spreading across the region.

Cingolani believes that a price cap is the only sustainable solution. It's a risk that someone could put forward a crazy gas price level.

The minister said that there could be additional measures such as separating prices for gas-fired power from prices for renewable energy.

Cingolani said that a decision to temporarily increase coal production from existing plants would not affect Italy's decarbonization targets.

The German government wants to cut its dependence on Russian gas by reviving coal-fired power stations.

Germany plans to use coal and gas to offset the Russian cut.

Ewa Krukowska assisted.