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The European Union’s executive told its 27 member countries at a seminar on Monday that it was not possible to create a gas price cap that would not affect long-term contracts or supply security, two diplomatic sources told Reuters.
After much wrangling at an all-night summit, EU leaders agreed last month to task the executive European Commission with proposing a temporary EU framework to cap gas prices in electricity generation and create a temporary natural gas transaction price corridor to bring down costs for consumers.
But a compromise between those like France, Spain and Belgium that want a cap, and the German-led camp opposing it meant additional conditions were attached, namely that any cap could not affect long-term contracts, lead to an increase in gas consumption or provoke producers to reroute supplies elsewhere.
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