In Brief
Why gas price caps and consumer subsidies are both extremely costly and ultimately futile
The EU is facing an energy crisis. Russia’s de facto embargo on gas exports has sent spot prices on Europe’s exchanges to unprecedented levels. The prices paid by consumers have also increased, albeit much less so than the spot prices. Prices for households have doubled in many Member States, while gas spot prices on the […]
Publication
When the taps are turned off
There is no silver bullet. Renewables or new conventional energy supplies will take years to become available at the scale needed. However, high prices do induce substitution to other fuels and encourage energy savings – not only in Europe, but also in other markets, thus potentially freeing up gas for Europe. This CEPS Policy Insights […]