Europe faces pressure to cap gas prices

Energy woes: Gas pipelines are pictured in Lubmin, Germany. The country fears a price cap will spur demand at a time when the EU is grappling with limited supply. — Reuters

LONDON: The European Union (EU) is moving closer to proposing a temporary overhaul of the electricity market by limiting prices of gas used for power generation even as pressure mounts for the bloc to impose a broader cap.

EU energy ministers gathering in Prague soon will consider that model, which has already been adopted by Spain and Portugal, allowing consumers to avoid the worst of the price surges.