At the same time, gasoline prices have experienced a steep rise, surpassing €2 per litre in several European countries.
In Spain, one of the country worst hit by the crisis, the transport sector began an indefinite strike on March 14 to protest the state of near “bankruptcy” of its employees.
Under enormous popular pressure, Spanish Prime Minister Pedro Sánchez arrived in Brussels to secure concessions from his peers that would tweak the existing rules of the EU energy market.
Under this system, all electricity producers – from fossils fuels to wind and solar – bid into the market and offer energy according to their production costs.
Since most EU countries still rely on fossil fuels to meet all their power demands, the final price of electricity is often set by the price of coal or natural gas.
“The impact of the Ukraine war, we feel it in Europe.
“The prices today have nothing to do with reality, which are ruining our population and ruining our public finances.
The burning question is how to pay for these additional costs.
Price caps might also distort competition, risk trade and even threaten the security of supply, the Commission warned.
The question of decoupling will come back to the table in May, when the Commission is expected to unveil more ideas on how to avoid the contagion effect.