A gas price cap in Europe has moved closer after German leaders changed their position during a European Council Summit on Thursday
Germany’s concessions mean the European Commission can begin determining the specific terms of the cap.
Plans to control the gas price are among many policies suggested by the European Commission to tackle rising energy bills.
Joint purchasing of gas and default solidarity laws that would see gas allocated to regions affected by supply emergencies have also been proposed by the commission.
“We have given a decision here, which gives a mandate to investigate what is possible,” said German chancellor Olaf Scholz.
European Commission president, Ursula von der Leyen said there is now “a very good and solid roadmap” to tackle high energy prices that have been influenced by the rapid rise in the cost of gas after the Russian invasion of Ukraine.
Previously, the EU announced plans to impose a €180/MWh revenue cap on renewable electricity generators to try and break the link between gas and other energy prices that sees the former determine the market price of electricity.