EU energy ministers meet in Luxembourg as gas price tops €100/MWh

European Union energy ministers are meeting in Luxembourg to discuss supply security and ways to curb rising energy costs after natural gas prices in Europe climbed past €100 per megawatt-hour for the first time since December 2022. The spike has heightened concerns about more expensive heating, electricity and industrial production ahead of winter.

Market moves and policy options

European benchmark gas — the Dutch TTF — rose by about four percent yesterday, according to exchange data relayed in the original report. That increase leaves gas roughly three times more expensive than it was before the start of the war with Iran in February.

At the Luxembourg meeting, ministers are examining proposals aimed at lowering electricity bills through adjustments in network tariffs and tax treatments. One option on the table is to tax electricity more favorably than natural gas, a change that could shift incentives for consumers and utilities but has not been agreed.

So far there has been no announcement of an emergency measure that would guarantee lower prices for households or businesses. Negotiations are expected to focus on short-term relief measures and steps to shore up supply as temperatures fall.

European Commissioner for Energy Dan Jørgensen warned that "the situation is serious," while also saying there is presently no immediate danger of energy shortages. Ministers will try to convert that warning into concrete policy proposals during the day.

Photo: press material from the event