The EU could cap gas prices in a bid to contain the rising energy costs, according to European Commission President Ursula von der Leyen.
EU governments have debated a gas price cap for weeks, but they haven't reached an agreement. While a majority of EU members support a form of cap to tackle soaring inflation, Germany, Denmark and the Netherlands oppose it, citing concerns over security of supply.
The EU executive's chief laid out her proposals in a letter on Wednesday to EU country leaders who will discuss whether or how to cap gas prices at a meeting in Prague on Friday.
She said that there should be a price limitation in relation to the TTF in order to ensure the supply of gas to Europe and to all Member States.
Von der Leyen said that such a cap would be a temporary fix while the EU works on a new gas price benchmark.
Brussels says a new index is needed because the main TTF benchmark is no longer representative of a market that includes more liquefied natural gas.
Greek Premier Kyriakos Mitsotakis welcomed von der Leyen's proposal on Twitter as a very important step in the right direction. A senior EU diplomat said it would be difficult to design a measure suited to all 27 EU countries' national energy markets.
Russia has slashed gas deliveries to Europe since its invasion of Ukraine, blamed it for the cuts on Western sanctions imposed over the invasion.
Von der Leyen said the EU should consider a price cap on gas used to generate electricity, but that any cap must be matched with tougher requirements to cut gas demand to ensure gas consumption does not rise at a time when fuel is scarce.
Von der Leyen said in the European Parliament on Wednesday morning that the EU should try to negotiate a price corridor on gas imports from trusted suppliers.
Von der Leyen said the EU should consider additional funding sources to ensure that all member countries can invest enough to weather the energy crisis.
The Commission said it is in talks with Germany about its €200 billion US $198.8 billion support package that critics say threatens to distort competition in the bloc.