Malta on Thursday joined other EU states opposing a European Commission proposal for a cap on gas prices to mitigate the energy crunch. 

Energy ministers convened in Brussels for an extraordinary council to discuss proposals for three emergency regulations: establishing a solidarity mechanism on energy, an easier renewable permitting process, and a market correction mechanism for gas prices, also known as a gas price cap.

During the last European Council, the prime ministers of 16 EU member states, including Malta, called on the European Commission to issue a proposal allowing for lower and stable gas prices across the bloc.

However, during today’s meeting, there was no agreement on the proposal presented by the Commission, which was not considered favourably by most EU member states due to several reservations.

In a statement, the Energy Ministry said Malta was among the countries that are disagreeing with this proposal. 

Minister Miriam Dalli said that while Malta backed energy solidarity and an easier permitting process for renewables, it could not agree with the way the market correction mechanism was being proposed. 

The proposal, she said, neither tackled the need for stabilisation of gas prices nor ensured an implementable mechanism that could truly assist member states to deal with gas prices.

“Unfortunately, the proposal before us does not address our concerns and will not be effective in controlling the exorbitant gas prices used for electricity production." 

The ministers will continue negotiations in the coming days.

The ministers will now meet in the first half of December to try to bridge differences, said Czech Industry Minister Jozef Sikela, whose country holds the current presidency of the EU.

He added that the ministers did adopt a couple of other "important measures", including joint gas purchases to avoid intra-EU competition driving up prices, supply solidarity in times of need, and hastening the authorisation of renewable energy sources.

Several ministers going into Thursday's meeting complained that the gas price cap proposal on the table, unveiled by the European Commission just two days earlier, was clearly designed to never be used.

The Polish and Spanish energy ministers called the proposal a "joke". 

Greek Energy Minister Kostas Skrekas said the cap "is not actually a ceiling" on gas prices, and "we are losing valuable time without results".

The price cap plan - which the commission was never keen on - sets a maximum threshold of 275 euros per megawatt hour.

But it comes with so many conditions that it would not even have been activated back in August, when the gas price briefly soared above 300 euros, alarming Europe, which is used to historic prices of around 10 per cent of that.

Drop in Russian gas

The cap proposal would only be triggered if the 275-euro limit was breached continuously for at least two weeks, and then only if the price for liquified natural gas (LNG) rose above 58 euros for 10 days within that same two-week period.

The price of wholesale gas in Europe on Thursday was around 124 euros, according to the main TTF benchmark.

The commission's proposed price cap was seen as neutered under pressure from members including Germany and the Netherlands, which feared a cap could divert gas supplies to more lucrative markets, especially Asia.

Yet at least 15 EU countries - more than half the bloc - want some form of workable ceiling on wholesale gas prices to tackle a crunch in supply forced by Russia's war in Ukraine.

While the European Union hasn't banned Russian gas, the Kremlin has been turning off the taps in retaliation for sanctions imposed by Brussels in the wake of Moscow's invasion. 

Before the war, Russian gas supplies accounted for more than 40 per cent of all imported gas into the European Union, with export powerhouse Germany particularly needy.

That has now dropped to less than 10 per cent. 

But alternative sources - such as LNG shipped from the United States and the Gulf - cannot make up the shortfall, and Europe faces a pricey heating bill for winter.

EU energy commissioner Kadri Simson acknowledged the divisions over the price cap as she went into the meeting.

She noted that the ministers have "a right to calibrate the different parameters" if they wished - something that may happen in time for their next meeting, likely to be called for December 13.

The price cap plan, if adopted, would start in January. It would run alongside a voluntary initiative for EU member states to cut natural gas use by 15 per cent over the northern hemisphere winter.

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