Brussels is working on a €200 a megawatt hour limit to the price of electricity generated by non-gas power producers as part of efforts to quell the EU’s energy crisis.
In a draft of proposals seen by the Financial Times, the European Commission said it recommended member states cap the price of electricity from producers such as wind farms, nuclear and coal plants, all of which are set by the high price of gas, at €200 a MWh.
The current spot price for electricity in Germany, the regional benchmark, is above €450 a MWh. Wholesale electricity prices have skyrocketed because they are pegged to the price of gas, whether or not the electric power is produced with gas or by other means. Gas prices are roughly 10 times higher than they have been compared with averages over the past decade