EU countries draft plan for 'gas price corridor' - Reuters

Reuters writes about this, referring to the relevant document.

EU country leaders will discuss whether and how to cap gas prices at a meeting in Prague on Friday. Brussels is considering the idea but has yet to make a formal proposal - and in the meantime, some countries have drafted their own.

"The corridor would apply to all wholesale transactions, not limited to import from specific jurisdictions and not limited to specific use of natural gas," said a document outlining the proposed price "corridor" - a range determined by and lower than the market price.

The document, shared with other EU states, suggested setting the price corridor at a level that was high enough to still let the gas market function, and flexible enough to ensure European countries can still attract supply from price-competitive global gas markets.

If necessary, that could mean allowing gas transactions at prices above the corridor. 

"It should act as a circuit breaker and disincentive to speculation. It is not meant to suppress prices at an artificially low level," the document said, adding that it should also apply to long-term contracts that have a price pegged to existing gas price benchmarks."