European Union ministers in charge of energy discussed the elements of a potential cap on the price of gas after EU leaders reached a basis for compromise last week, with concerns easing as the wholesale price of the fuel continues to fall.
There was wide support for the "introduction of dynamic price cap on electricity and gas which would limit the excessive price spikes in case of a market panic," said Czech Industry Minister Jozef Sikela after the meeting in Luxembourg on Tuesday.
Ministers however "have rather different views" on a recent European Commission proposal for an emergency measure to limit the price of gas traded at the Dutch Title Transfer Facility (TTF), Sikela said, who chaired the meeting.
The TTF serves as a reference price for many natural gas transactions across the bloc
"The main question is how to make sure that capping will still allow us to buy gas we need on the market," Sikela said.
The Czech minister announced an additional meeting of EU energy ministers in November to forge a compromise.
EU energy ministers also supported a proposal by the commission to make joint purchases of gas operational as of next year, EU Energy Minister Kadri Simson said after the meeting.
Joint purchases would be the "most efficient way" to lower the price of gas in the EU, German Economy Minister Robert Habeck said on his arrival to the talks.
"Europe has great market power. If the big players are allowed to collaborate, to form purchasing pools, then Europe's market power will have an impact," he said.
Habeck welcomed a recent downward trend in wholesale gas prices.
On Monday, the wholesale price per megawatt hour for natural gas futures at the TTF fell below €100 ($98.6) for the first time in four months.
"One would not have dared to dream of this in the summer," Habeck said after the meeting. In August the price peaked at close to €350.
Short-term spot market prices fell to around €30, Habeck said.
Habeck said that political decisions taken in recent weeks and months including requirements to fill up gas storages and expanding renewable energy capacities, reassured markets.
Unseasonably warm weather in large parts of Europe is also delaying the start of the heating season and keeping demand low.
"I strongly believe that the game is not over," cautioned Sikela, adding that over the past year the price of gas has seen several fluctuations and price decreases have not yet reached end users.
"And because the game is not over we need to have an emergency measure regardless where we are currently on the [price] curve," he added.
Next to the design of a potential gas cap, energy ministers also dealt with two long-term legislative proposals linked to the bloc's gas market and consumption.
Ministers discussed a new directive aimed at de-carbonizing gas markets and agreed on a common position on revising standards for the energy performance of buildings ahead of entering talks with the European Parliament to negotiate the final regulation.
