VILNIUS – The Czech Republic's latest proposal on an EU price cap on natural gas "is not sufficient", Lithuanian Energy Minister Dainius Kreivys has said.
"In the talks on the market adjustment mechanism, there is some movement in the right direction from the initial proposal, but the compromise proposal prepared by the Czech Presidency is not sufficient," Kreivys said in a press release on Tuesday evening.
"We agreed (...) to continue working intensively toward an agreement on a mechanism that would ensure the stability of the gas market, security of supply, the viability of our industry and low prices for our people," he added.
Earlier on Tuesday, the bloc's energy ministers failed to agree on a gas price cap at an emergency Energy Council meeting in Brussels.
In late November, the European Commission proposed a gas price cap of 275 euros per megawatt hour for month-ahead TTF contracts, but only if the price remains above that level for at least two weeks and if the price for liquefied natural gas goes above 58 euros for 10 days within the two-week period.
The Czech Republic, which is currently holding the EU's rotating presidency, last week suggested lowering the cap to 220 euros. The cap would be triggered if prices for month-ahead contracts on the Dutch TTF, Europe's benchmark gas hub, exceed the level for five days and are 35 euros above the reference price for LNG.
According to the Lithuanian Energy Ministry, many member countries did not approve of the Czech proposal, with positions diverging on the proposed price cap, the scope of the mechanism, and the conditions for its activation and deactivation.
EU energy ministers are expected to continue their talks on the gas price cap next Monday.