German gas lobby says EU price cap will not work in practice

German gas lobby Zukunft Gas on Monday said attempts by the European Union to put a cap on wholesale gas prices was a "political illusion" that would not work in practice. "But that is not on the table in Brussels," he added. EU energy ministers were considering a compromise proposed by the Czech presidency after failing to agree a method to cap prices for months.

German gas lobby Zukunft Gas on Monday said attempts by the European Union to put a cap on wholesale gas prices was a "political illusion" that would not work in practice. Timm Kehler, managing director, said in a statement to Reuters it would make more sense to curb demand via a Europe-wide mechanism to allocate gas volumes. "But that is not on the table in Brussels," he added.

EU energy ministers were considering a compromise proposed by the Czech presidency after failing to agree a method to cap prices for months. Germany, the biggest member state and mainland Europe gas market, has criticised proposed caps, fearing they will work towards blocking access to gas on the world market.