A document seen by Reuters outllines an EU Commission proposal to break the link between natural gas and electricity prices. It would introduce a price limit on electricity generation prices from operators that don't use gas generation. The proposals also include measures to reduce demand.
This is a dangerous game they're playing. There's no doubt that anyone selling hydro, wind, solar or coal-fired electricity in Europe right now is getting a windfall. But does this kind of thing diminish incentives to add or invest in supply?
As I wrote last month, there's no longer a functioning energy 'market' in Europe so this kind of thing was inevitable.
As for pricing, there's been some easing in day-ahead pricing for electricity but it's still at extremely punitive levels. Prior to this crisis, €100 was a high price.
