Policy Options to Mitigate the Impact of Natural Gas Prices on Electricity Bill

EASE has prepared a short briefing on the non-paper addressing policy options to mitigate the impact of natural gas prices on electricity bill. This Commission non-paper is published in response to the European Council on 20 October 2022 calling on the Commission to submit concrete decisions on steps to address the EU energy market, particularly options for an EU gas price cap mechanism.

The non-paper lays out possible options for the Commission in a cost-benefit analysis of a cap in recognition of not modifying the merit order of electricity generation, to prevent increase in gas consumption, to address financial and distributional effects and to address the flow of gas beyond EU borders.