Nations seek consensus on cutting energy costs

BRUSSELS — European Union nations are struggling to find full consensus on ways to shield the population from dramatically increasing energy prices that threaten to plunge millions into cold and poverty over the winter as Russia chokes off natural gas supplies. As tensions with Moscow mount over the war in Ukraine, the energy ministers of the EU’s 27 nations could not paper over differences Friday on whether and how to impose a price cap on Russian natural gas, with ever-recalcitrant Hungary refusing to agree, saying it would go against its supply interests.

Other countries differed on whether a price cap should apply only to Russia or to other producers, too.

An immediate solution on all proposals to bring natural gas and electricity prices back to affordability had not been anticipated, but energy ministers gave general recommendations to the European Commission, the EU’s executive branch, on options like instituting windfall levies on some energy companies whose profits have risen along with skyrocketing prices.

Moscow’s gas restrictions and threat of a full cutoff has dominated the political agenda of a rich bloc of nations struggling to ensure basic services like heat and light. Russia has cut back supplies of natural gas that power factories, generate electricity and heat homes, driving up prices and fueling inflation that is poised to tip Europe into recession later this year.

“Russia has used its gas supplies as a weapon to foster an energy crisis next winter but also to weaken our economies and divide — politically — the European Union,” EU Energy Commissioner Kadri Simson said. “We have to ensure that their efforts will fail.”

Czech Industry Minister Jozef Sikela, chair of the emergency meeting, exhorted his colleagues: “We cannot be blackmailed.”

Sikela and others said that outside the gas cap, a wide degree of convergence was found other potential measures. Besides windfall levies, they include solidarity contributions from fossil fuel producers and cash increases for businesses to keep operating as they struggle with volatile energy markets.

Despite the urgency, with several northern nations feeling the first chill in the morning air announcing the onset of autumn, the ministers gave only guidelines to the EU commission, which will present a proposal for the member states this week.

At that point, the EU nations will reassess again, and the hope is that a decision can be made by the end of this month.