9/1/2022, 9:24 PM (Source: TeleTrader)
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EU considers price cap on non-gas electricity sources - report

The European Commission is currently in the process of creating a proposal that would tackle the issue of rising electricity prices by putting a cap on prices paid for non-gas sources of power generation, the Wall Street Journal reported on Thursday, citing a document, reviewed by the news outlet. The proposal suggests that a major interception is needed in the electricity market in Europe.

As natural gas is the most expensive fuel on the continent, the commission plans to lower the fuel costs of other forms of generation, such as solar or wind power. This would bring the electricity prices down as consumers would be paying the price of blended costs of the electricity generation. Nevertheless, capping these sources has its own risks, the document warns, as such action could lead to less investment in these technologies.

Baha Breaking News (BBN) / AY