The European Commission is considering capping natural gas prices

The European Commission is working on a set of measures aimed at reducing energy prices: optimising the role of PPAs and contracts for difference, capping the price of natural gas. The gas price cap would in fact aim to indirectly cap the price of electricity and would come into play when the latter plays a leading role in the formation of the price of electrical energy, thus echoing the decree adopted by the Italian government a month ago. This so-called market correction mechanism was implemented in December 2022 and would be applied at European level. However, its use would be subject to specific criteria. The European executive has undertaken to present this package of measures to the European Parliament on 19 March.