The European Union is drafting emergency plans to intervene in its energy market as pressure grows from member states to put a lid on surging electricity prices.
European Commission chief Ursula von der Leyen said that Brussels was preparing an intervention to separate power prices from the soaring cost of gas, as well as longer-term reforms to ensure electricity prices reflected cheaper renewable energy.
The EU's 27 countries have disagreed in recent months over whether to intervene in energy markets as reduced Russian gas deliveries to Europe have pushed up power costs.
But with gas prices almost 12 times higher than at the start of 2021 and power prices setting record highs almost daily, even the most sceptical states are softening.
In the current system the EU wholesale electricity price is set by the last power plant needed to meet overall demand. Gas plants often set that price, which countries including Spain have said is unfair because it means cheap renewable energy is sold at the same price as costlier fossil fuel-based power.
Von der Leyen met government leaders from Denmark, Poland, Finland and the Baltic states near Copenhagen on Tuesday, offering an opportunity to pitch the proposals to states wary of market reforms.
