The European energy industry is in the midst of a major turning point, Barclays says, as the head of a French utility company called for a cap on energy prices.
Engie CEO Catherine McGregor said a Europe-wide cap was needed on energy prices to contain volatility in gas and oil markets.
"As a matter of urgency, I think it's really important that we take a look at capping wholesale gas prices at European level. That will make it possible to contain the volatility,” she said in front of a panel hosted by the French government.
Energy prices continue to soar, with crude oil reaching 14-year highs to surpass US$120 a barrel and natural gas prices up 150% in the last month.
"We've never reached such levels in the past,” McGregor said.
"I think that that is why it justifies a measure, a cap. We're in exceptional circumstances."
Mainland Europe, particularly the Eastern bloc, is heavily reliant on Russia for its energy requirements, importing about 405 of its needs from Russia.
Russia’s invasion of Ukraine has accordingly sparked a major policy rethink in both energy security and defence across the West.
The US and UK plan to ban Russian energy imports this year, while the Euorpean Union plans to cuts its dependence by two thirds, with the cancellation of Nord Stream 2 a watermark in the German-led shift in Europe away from Russia.
Barclays said it saw the invasion as a major turning point for European Energy.
“The Russian invasion of Ukraine has highlighted the failure of European energy policy to provide for security of supply and diversity of energy policy,” the bank said.
“We believe it will have major implications for the utility sector in the short, medium and long term.”