London — British and Dutch gas prices rose on Wednesday morning as the EU omitted a proposed gas-import price cap from plans to combat spiralling energy costs.
The Dutch front-month contract, the European benchmark, was up 15.50 euros at 210 euros per megawatt hour (MWh) at 0834 GMT.
The British day-ahead contract was up 28 pence at 370 pence per therm, while the October contract rose 21.56 p to 380.06 p/therm.
The European Union on Wednesday announced plans to shield citizens and businesses from surging energy prices. The plans included a levy on windfall profits from energy companies and cuts in electricity usage across the bloc.
The European Commission, however, backed away from an initial plan to cap Russian gas prices. EU countries are divided over whether broader price caps would help or harm Europe’s efforts to secure winter energy supplies, although diplomats from some states are still pushing for the measure.
“With the prospect of a gas price cap receding, the market remains on its momentum of the previous days,” analysts at Engie EnergyScan said.
Gas prices had fallen in the previous few days as the measure was discussed.
While Europe has met a target early for filling its gas stocks by 80% by November, ongoing concerns over gas supply this winter hang over the market.
“Months of geopolitical wrangling have left the European gas market whiplashed, with volatile prices stemming from lack of supply, potential market intervention, and wider uncertainty,” Rystad analyst Zongqiang Luo said.
Eastbound natural gas flows through the Yamal-Europe pipeline to Poland from Germany fell on Wednesday morning, while flows from Russia to Europe via Ukraine were steady and the Nord Stream 1 pipeline remained closed.
In the European carbon market, the benchmark contract was down 0.85 euros at 68.90 euros a tonne.
Reporting By Susanna Twidale; Editing by Bradley Perrett – Reuters
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